U.S. electricity consumption is expected to reach all-time high levels this year and then again in 2025, according to the latest estimates by the Energy Information Administration (EIA).
Total U.S. electricity consumption is set to increase to 4,086 billion kilowatt hours (kWh) this year and to 4,165 billion kWh next year, the EIA forecasts in its latest Short-Term Energy Outlook (STEO) for December.
The consumption in 2024 and 2024 would compare to a previous record of 4,067 billion kWh of total U.S. power use in 2022.
In the winter period of 2024/2025, the administration expects a 2% increase in total power consumption compared to last winter, due to expectations of colder temperatures than in the milder 2023/2024 winter and the continued increase in demand from data centers.
This winter, electricity sales in the U.S. commercial sector are expected to grow by 2% due to the colder weather and continued growth in power demand from data centers, the EIA said.
The share of natural gas in America’s electricity generation is set to increase to 43% this year, up from 42% in 2023. This share is forecast to drop to 40% next year amid a rise in renewables’ share expected to increase to 23% this year and to 25% in 2025.
Coal’s share is set to drop from 17% last year to 15% in 2024. This share will remain the same in 2025, as the EIA now expects more coal generation in 2025, compared with its January forecast, “due to an upward revision in overall electricity demand associated with rising electricity consumption from data centers.”
U.S. electricity demand has been soaring over the past year, due to the AI and data center boom, and the U.S. is using growing volumes of natural gas to meet the increased consumption. Power-generating companies are announcing plans for the highest volume of new natural gas-fired capacity in years.
Natural gas-fired electricity generation in the United States has jumped amid a rise in total power demand, driven by consumption from data centers.
By Tsvetana Paraskova for Oilprice.com
