(Investing) – U.S. energy consumption is projected to succeed in file ranges within the subsequent two years, in accordance with the Power Info Administration’s short-term power outlook launched Tuesday.
The EIA forecasts energy demand will climb to 4,199 billion kilowatt-hours in 2025 and additional improve to 4,267 billion kWh in 2026, up from the 2024 file of 4,110 billion kWh.
This surge in electrical energy demand is partly attributed to knowledge facilities supporting synthetic intelligence and cryptocurrency operations. Moreover, houses and companies are more and more shifting from fossil fuels to electrical energy for heating and transportation wants.
For 2025, the EIA initiatives energy gross sales will attain 1,516 billion kWh for residential shoppers, 1,486 billion kWh for business prospects, and 1,055 billion kWh for industrial prospects.
These figures strategy or exceed historic peaks, with residential consumption surpassing the earlier file of 1,509 billion kWh set in 2022. Business utilization will exceed its all-time excessive of 1,451 billion kWh recorded in 2024, whereas industrial consumption will stay under its peak of 1,064 billion kWh from 2000.
The power combine powering this elevated demand can be altering. Pure fuel’s share of energy era is predicted to lower from 42% in 2024 to 40% in each 2025 and 2026. Coal will briefly rise from 16% in 2024 to 17% in 2025 earlier than returning to 16% in 2026 as renewable power expands.
Renewable era is forecast to develop steadily from 22% in 2024 to 24% in 2025 and 25% in 2026. In the meantime, nuclear energy’s contribution will decline barely from 19% in 2024 to 18% within the following two years.
For pure fuel consumption, the EIA initiatives 2025 gross sales will improve to 13.2 billion cubic toes per day for residential customers, 9.8 bcfd for business prospects, and 23.7 bcfd for industrial prospects, whereas lowering to 35.9 bcfd for energy era.
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