With growing power demand from data centers, manufacturing and the electrification of transportation and buildings, the EIA projected power demand will rise to 4,101 billion kilowatt-hours (kWh) in 2024 and 4,185 billion kWh in 2025.
That compares with 4,000 billion kWh in 2023 and a record 4,067 billion kWh in 2022.
Rising instances of extreme weather, which cause homes and businesses to crank up air conditioners or increasingly-electric heating systems, are also driving up demand.
EIA forecast 2024 power sales will rise to 1,503 billion kWh for residential consumers, 1,413 billion kWh for commercial customers and 1,039 billion kWh for industrial customers.
That compares with all-time highs of 1,509 billion kWh for residential consumers in 2022, 1,391 billion kWh in 2022 for commercial customers and 1,064 billion kWh in 2000 for industrial customers.
U.S. power supply, meanwhile, is expected to rise 3% this year from 2023 to meet growing demand, with solar and natural gas-fired power making up the bulk of new generation, the EIA said.
Solar made up nearly 60% of all U.S. power generating capacity added in the first half of 2024, the EIA said.
Texas, with 16 billion kilowatt hours [BkWh] led the country in solar capacity expansions, followed by California, with 9 BkWh in additions, the EIA said.
The EIA said natural gas' share of power generation would hold at 42% in 2024, the same as 2023, before sliding to 39% in 2025. Coal's share will ease from 17% in 2023 to 16% in 2024 and 2025 as renewable output rises.
The percentage of renewable generation will rise from 21% in 2023 to 23% in 2024 and 25% in 2025, while nuclear power's share will hold at 19% in 2024 and 2025, the same as 2023.
EIA projected 2024 gas sales would hold at 12.3 billion cubic feet per day (bcfd) for residential consumers, rise to 9.3 bcfd for commercial customers and 36.1 bcfd for power generation, and slide to 23.2 bcfd for industrial customers.
That compares with all-time highs of 14.3 bcfd in 1996 for residential consumers, 9.6 bcfd in 2019 for commercial customers, 23.8 bcfd in 1973 for industrial customers and 35.4 bcfd in 2023 for power generation.
