BAKU, Azerbaijan, November 19. The U.S. Energy Information Administration (EIA) projects a 3% increase in electricity generation in 2024, fueled by higher air-conditioning demand during this year’s hotter summer and expanding industrial and commercial activity, Trend reports.
A further 1% growth is anticipated in 2025, led by the increasing energy needs of industrial operations and commercial data centers.
According to the agency, natural gas and solar power are expected to be the primary drivers of the 2024 growth. Natural gas generation is projected to rise by 3%, supported by low fuel prices, while solar generation is set to surge by 34% due to expanding capacity, particularly in Texas.
However, rising natural gas prices and a slower demand increase in 2025 are forecasted to reduce natural gas generation by 5%, with the Northwest seeing a sharper decline of 13% as hydropower output rebounds by 23% after drought conditions ease.
Solar power will continue its rapid ascent, the EIA noted, with an additional 31% growth in 2025. This rise, combined with enhanced battery storage in Texas, is expected to further offset natural gas usage in the state. Despite their significant growth, data centers remain a relatively small contributor to overall electricity demand.