U.S. power consumption will rise to record highs in 2024 and 2025, the U.S. Energy Information Administration said in its Short Term Energy Outlook Tuesday. EIA projected power demand will rise to 4,096 billion kilowatt-hours in 2024 and 4,125 billion kWh in 2025.
EIA said natural gas' share of power generation would hold at 42% in 2024, the same as 2023, before easing to 41% in 2025. Coal's share will drop from 17% in 2023 to 15% in 2024 and 14% in 2025 as renewable output rises. The use of coal to generate power has been falling versus gas in part because gas produces less carbon dioxide and other emissions and its comparative cost to coal has dropped.
In 2024, spot gas prices at the U.S. Henry Hub benchmark in Louisiana will average just $2.15 per mmBtu versus $2.45 for coal, EIA said. That compares with 2023's averages of $2.54 for gas and $2.52 for coal.
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