Record Highs Predicted for U.S. Power Consumption in 2024 and 2025
U.S. Energy Information Administration Forecasts Increase in Power Demand
The U.S. Energy Information Administration (EIA) announced that U.S. power consumption is expected to reach record highs in 2024 and 2025, according to its Short-Term Energy Outlook (STEO) released on Tuesday.
Rising Power Demand Projections
EIA projects that power demand will surge to 4,096 billion kilowatt-hours (kWh) in 2024 and further increase to 4,125 billion kWh in 2025, surpassing the 2023 level of 4,000 billion kWh and the previous record of 4,067 billion kWh in 2022.
Shift Towards Electricity Usage
With a shift towards electricity usage over fossil fuels for heating and transportation, EIA forecasts a rise in power sales for different consumer segments in 2024. Residential consumers are expected to reach 1,506 billion kWh, commercial customers at 1,389 billion kWh, and industrial customers at 1,047 billion kWh.
Changing Landscape of Power Generation
EIA predicts that the share of power generation will remain steady at 42% in 2024, before slightly decreasing to 41% in 2025. The decline in coal’s share from 17% in 2023 to 15% in 2024 and 14% in 2025 will be offset by an increase in renewable output.
Gas Surpasses Coal in Cost Efficiency
The cost efficiency of gas over coal is expected to continue in 2024, with gas prices averaging $2.15 per million British thermal units (mmBtu) compared to $2.45 for coal. This shift is attributed to gas producing fewer emissions and its declining cost relative to coal.
Projection for Gas Sales
EIA projects an increase in gas sales for different sectors in 2024, with residential consumers at 12.57 billion cubic feet per day (bcfd), commercial customers at 9.34 bcfd, and power generation at 35.88 bcfd. However, industrial customers are expected to see a decline to 23.22 bcfd.
