According to the latest report from the U.S. Energy Information Administration (EIA), the U.S. will see record-breaking power consumption by 2024 and 2025.
They predict electricity usage will hit 4,093 billion kilowatt-hours (kWh) in 2024 and climb even higher to 4,163 billion kWh in 2025. This growth comes after hitting 4,000 billion kWh in 2023 and a previous high of 4,067 billion kWh in 2022.
The Cause of the Energy Boom
It’s largely the increasing reliance on electricity for things like AI, data centers, heating, and transport. Power sales in 2024 are anticipated to reach 1,412 billion kWh for businesses, 1,033 billion kWh for the industrial industry, and 503 billion kWh for homes. For perspective, the previous records were 1,509 billion kWh for homes in 2022, 1,391 billion kWh for businesses in 2022, and 1,064 billion kWh for industrial customers in 2000.
Other Forms of Energy
According to the EIA, natural gas will account for 42% of power generation in 2023 and 2024 before dropping to 39% in 2025. Meanwhile, coal’s share will decrease from 17% in 2023 to 16% in 2024 and 2025 as renewable energy production increases.
The percentage of renewable energy generation is projected to increase from 21% in 2023 to 23% in 2024 and further to 25% by 2025. This growth reflects ongoing investments and advancements in renewable technologies such as solar, wind, and hydroelectric power. Meanwhile, nuclear power’s share is expected to remain stable at 19% through 2024 and 2025, maintaining the same level as in 2023. This consistency in nuclear energy contribution underscores its role as a steady and reliable power source amidst the shifting energy landscape.
Looking at natural gas sales, the EIA sees a dip to 12.2 billion cubic feet per day (bcfd) for homes and 23.3 bcfd for industrial sectors in 2024. Commercial use might slightly increase to 9.2 bcfd, and power generation could rise to 36.4 bcfd. For some context, past records were 14.3 bcfd for homes in 1996, 9.6 bcfd for businesses in 2019, 23.8 bcfd for industries in 1973, and 35.4 bcfd for power generation in 2023.
This report illuminates energy trends, highlighting the growth of renewables and the increasing demand for electricity, giving us a clearer picture of where U.S. energy needs are headed.
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