In the wake of a record-breaking heat wave, total power consumption is expected to hit new highs nationwide in 2024, according to the Energy Information Administration (EIA).
In its latest Short-Term Energy Outlook, EIA expects demand will be about 2% higher during the second half of this year compared to the same period in 2023. Total consumption is expected to reach 4,123 billion kilowatt-hours (kWh) in 2024, compared to 4,000 billion kWh in 2023.
The agency projects even higher demand in 2025 — 4,197 billion kWh. Among the factors driving high electricity demand is the rapid development of data centers and cryptocurrency mining operations, according to a recent edition of EIA’s Today in Energy.
July’s Short-Term Energy Outlook said that demand spikes will drive natural gas prices 36% higher in the second half of 2024 compared to the first half — a trend that will likely lead utilities to lean on less expensive fuel sources, including coal and solar.
EIA expects 42% more electricity generation from solar, 6% more from wind, 4% more from hydropower and 3% more from coal for the second half of 2024 compared to the same period last year.
During the first half of 2024, electricity generation grew 5% as more Americans cranked up their air conditioners to cope with hotter-than-normal temperatures, the report said.
“The increase in electricity demand paired with a decrease in natural gas generation creates a gap between the power we need, and the power being produced,” EIA Administrator Joe DeCarolis said in a press release.
