According to the Energy Information Administration’s (EIA) Short-Term Energy Outlook (STEO), released on November 8, 2022, U.S. power consumption will rise to a record high in 2022 due to increasing economic activity and hotter summer weather.[1] The EIA projects that power demand increase from 3,930 billion kWh in 2021 to 4,036 billion kWh in 2022 before decreasing to 3,989 billion kWh in 2023 as temperatures moderate. Compared to 2021, in 2022, the EIA projects that power sales will rise to 1,509 billion kWh for residential consumers, 1,371 billion kWh for commercial customers, and 1,014 billion kWh for the industrial sector. Historically, record highs for power sales were 1,477 billion kWh for residential consumers set in 2021, 1,382 billion kWh for commercial customers set in 2018, and 1,064 billion kWh for industrial customers set in 2000. The EIA attributed the power sale increase for commercial customers to more people returning to the office.
The EIA expects that renewable sources will provide 22% of U.S. electricity generation in 2022 and 24% in 2023, largely coming from solar and wind capacity additions. Generation from natural gas will decline from 38% in 2022 to 36% in 2023.Coal's share will drop from 20% in 2022 and 19% in 2023.