Power use will drop slightly this year due to milder weather and slowing U.S. economic activity, according to the Energy Information Administration’s first forecast of 2023.
In the agency’s latest Short Term Energy Outlook, power use is expected to fall from 4,044 billion kilowatt-hours in 2022 to 4,014 billion kWh this year. But with expected improvements in the economy, consumption will increase to 4,064 billion kWh in 2024, according to the report.
Overall, electric consumption will remain “fairly stable” after growing by 3% last year, the report said. The EIA expects consumption to fall by 1% in 2023 and then rise by just over 1% in 2024.
Electric generation will follow a similar pattern, declining in 2023 and then rising in 2024 mostly due to renewable sources, the forecast said. By 2024, renewables are expected to account for 26% of all generation, compared to a 24% share in 2023. About two-thirds of the year-over-year increase will come from new utility-scale solar projects and most of the rest from wind, the report said. — NRECA
