US Power Usage Expected to Hit Record Levels in 2024 and 2025, According to EIA Report By Reuters

U.S. power consumption is expected to reach unprecedented levels in 2024 and 2025, according to the U.S. Energy Information Administration (EIA) in its latest Short Term Energy Outlook (STEO).

The EIA forecasts that power demand will rise to 4,093 billion kilowatt-hours (kWh) in 2024 and 4,163 billion kWh in 2025, up from 4,000 billion kWh in 2023 and a previous high of 4,067 billion kWh in 2022.

Factors contributing to this increase include heightened demand from artificial intelligence and data centers, as well as a greater reliance on electricity for heating and transportation in homes and businesses. The EIA also estimates that residential power sales will reach 1,503 billion kWh, while commercial customers will consume 1,412 billion kWh and industrial users will account for 1,033 billion kWh in 2024. These figures compare to record highs set in 2022 for residential (1,509 billion kWh), commercial (1,391 billion kWh), and industrial customers (1,064 billion kWh in 2000).

In terms of energy generation sources, the EIA indicates that the share of natural gas in power generation will remain steady at 42% in 2024 but is projected to decline to 39% in 2025. The contribution of coal is anticipated to decrease from 17% in 2023 to 16% in both 2024 and 2025 as renewable energy production increases. Renewable energy’s share is expected to rise from 21% in 2023 to 23% in 2024 and 25% in 2025, while nuclear power will maintain a consistent share of 19% during the same period.

The EIA’s gas consumption projections for 2024 indicate a decrease to 12.2 billion cubic feet per day (bcfd) for residential users and 23.3 bcfd for industrial consumers. However, gas consumption is expected to increase to 9.2 bcfd for commercial customers and 36.4 bcfd for power generation. These projections are contrasted with historical highs of 14.3 bcfd for residential consumers in 1996, 9.6 bcfd for commercial customers in 2019, 23.8 bcfd for industrial customers in 1973, and 35.4 bcfd for power generation in 2023.