%PowerConsumption in America is forecast to accelerate and reach record levels over the next two years, according to a new report from the U.S. Energy Information Administration (EIA).
In its “Short Term Energy Outlook,” the EIA said that it expects power demand across the U.S. will rise to 4,096 billion kilowatt-hours (kWh) in 2024 and 4,125 billion kWh in 2025, each of which would be all-time highs.
The latest forecast compares with 4,000 billion kWh in 2023 and a previous record 4,067 billion kWh in 2022.
The government agency said that homes and businesses are expected to use more electricity in coming years as the country moves away from fossil fuels for heat and transportation.
The EIA added that it expects natural gas’ share of power generation to remain steady at 42% in 2024, the same level as in 2023.
By 2025, natural gas’ share of American power generation is likely to dip to 41%.
Meanwhile, coal’s share of U.S. power generation is forecast to decline from 17% in 2023 to 15% in 2024 and 14% by 2025.
The use of coal has been declining in part because natural gas produces less carbon dioxide and other harmful emissions, and its cost has fallen in recent years.
The EIA projects that natural gas will be cheaper to use than %Coal in 2024 for the first time ever.
This year, natural gas prices at the U.S. Henry Hub facility in Louisiana will average $2.15 U.S. versus $2.45 U.S. for coal, according to the EIA.
The federal agency added that it expects natural gas sales will rise this year among American residential, commercial, and business customers owing to cheaper prices.
An unseasonably warm winter in North America and Europe has led to excess natural gas supplies around the world, pushing prices sharply lower.