U.S. power consumption will decline in 2023 due to the weakening of economic activity

In the Short-Term Energy Outlook for January, the U.S. Energy Information Administration (EIA) stated a decrease in power consumption in 2023. This outlook is driven by weak economic activity and mild weather conditions. However, the country’s power consumption reached record levels last year. 

According to the EIA, U.S. power demand will decline from 4,044 billion kilowatt-hours (kWh) to 4,014 billion kWh in 2023. With the acceleration of economic growth, demand might rise again, reaching even higher levels than before. The outlook predicts an increase to 4,064 billion kWh in 2024.

Also, the EIA announced that the share of natural gas in power generation will be gradually reduced. It was 39% in 2022, then it will decline to 38% in 2023 and fall by another 1% in 2024. Similarly, the share of coal will be reduced from 20% in 2022 to 17% in 2024. Priority will be given to power generation from renewable resources.