In its recent annual electricity report, the International Energy Agency found that U.S. electricity demand is likely to grow in the next three years. It projects a growth of about 2.5% in 2024, with smaller gains of about 1% in 2025 and 2026. As demand rises, following a valley in 2023 due to milder weather, it will be important to maintain grid reliability accordingly.
This growth of demand is attributed to electrification spurred on by subsidies from the Inflation Reduction Act and other recent legislation. Demand will also come from the building sector and from the proliferation of data centers. As demand growth continues, it’s essential that both supply and reliability keep pace. Even modest increases in electricity demand become difficult to handle coinciding with policies and administrative decisions that make reliable power production more difficult.
