EIA: US power consumption will reach new highs by 2025 and 26.

The Energy Information Administration (EIA) said Tuesday that the U.S. will reach record-high power consumption in 2025 and in 2026.

The EIA projects that power demand will increase to 4,187 billion Kilowatt-hours in 2025, and 4,305 in 2026. This is up from the record 4,097 in 2024.

These increases are due to the data centers that focus on artificial intelligence, cryptocurrency and homes and businesses using more electricity for heating and transportation and less fossil fuel.

EIA predicts that power sales for residential customers will reach 1,508 billion kWh in 2025, while commercial customers are expected to sell 1,482 billion, and industrial customers 1,055 billion.

These forecasts are compared to the all-time records of 1,509 GWh for residential customers in 2022, 1 434 GWh for commercial customers in 2024, and 1,000 MWh for industrial customers in 2001.

According to the EIA, natural gas' share in power generation will drop from 42% by 2024 to 40 % in 2025 and in 2026. Coal's share of power generation will increase from 16% to 17% by 2025, before slipping back to 16% by 2026 due to the rise in renewable energy.

According to the outlook, renewable energy will increase from 23% to 25% by 2025, and to 26% by 2026. Nuclear power will decline from 19% to 18% between 2024 and 2025.

Gas sales for residential customers would increase to 13,1 billion cubic feet (bcfd), while commercial and industrial customers would see a rise of 9.8 bcfd. Power generation, however, will fall to 35,8 bcfd.

This compares to all-time records of 14.3 billion cubic feet per day (bcfd) in 1996 for residential customers, 9.6 billion cubic feet per day in 2019 for commercial clients, 23.8 million cubic feet per day in 1973 for industrial consumers, and 36.9 billion cubic foot in 2024 for electricity generation. Reporting by Scott DiSavino, Editing by Richard Chang

(source: Reuters)