BAKU, Azerbaijan, May 8. Electricity generation in the United States is expected to grow steadily over the next two years, driven by increased demand from commercial and industrial users, according to the U.S. Energy Information Administration (EIA), Trend reports.
In its latest Short-Term Energy Outlook, the EIA forecasts that total U.S. power generation will rise by 2% in 2025 - an increase of around 100 billion kWh - and grow by another 1% in 2026.
While natural gas remains the country’s largest electricity source, the EIA expects gas-fired power generation to decline by 3% this year. The anticipated drop of 58 billion kWh is primarily due to higher natural gas prices, which are forecast to average $4.50 per million British thermal units in 2025—a 63% increase from 2024’s historically low levels.
As gas becomes more expensive, coal is regaining ground, at least temporarily. Coal-fired generation is projected to rise by 6% (41 billion kWh) in 2025, buoyed in part by the Environmental Protection Agency’s recent decision to temporarily relax emissions regulations for some coal plants. This regulatory pause, combined with higher gas prices, is likely to support coal use through the near term.
However, the rebound in coal is expected to be short-lived. The EIA notes that around 5% of the nation’s coal-fired capacity is slated for retirement in 2025, mostly in the final months of the year. As a result, coal generation is projected to decline by 9% in 2026 (61 billion kWh). A recent Executive Order aimed at supporting the coal sector could alter those retirement plans, though the exact impact remains uncertain.
