U.S. electricity consumption to grow 2.4% in 2022: EIA

US electricity price

U.S. electricity consumption is expected to increase 2.4 percent in 2022 due to surge in economic activity and hot summer weather, the U.S. Energy Information Administration (EIA) said.

Growth in renewable energy will meet most of the increased electricity demand this year. The United States has consumed more natural gas to meet electricity demand so far this summer than the previous five-year average, EIA report said.

“High temperatures have contributed to more air conditioning load, which is a significant driver in our forecast for more electricity consumption this year compared to last year,” said EIA Administrator Joe DeCarolis.
US natural gas priceDemand for natural gas to generate electricity has contributed to high prices for natural gas, even as more natural gas enters the domestic market due to the June shutdown of the Freeport liquefied natural gas terminal.

EIA expects U.S. residential electricity prices will be 6.1 percent higher in 2022, largely as a result of high natural gas prices.

EIA expects U.S. crude oil production to average 12.7 million barrels per day in 2023, which is about 70,000 barrels per day less than its July forecast. EIA’s July forecast was based on estimated domestic crude oil production averaging 11.7 million barrels per day in May 2022, but data in the Petroleum Supply Monthly show production averaged 11.6 million barrels per day for the month.

EIA expects the United States to continue to increase its capacity to generate electricity from solar power through 2023. U.S. utility-scale solar capacity will increase by 20 gigawatts (GW) in 2022 and 24 GW in 2023, representing an addition of 31 billion kilowatthours (kWh) of electric power generation in 2022 and 41 billion kWh in 2023.