US Electricity Demand Growth Shows Signs of Cooling
▼ Summary
– US electricity demand growth moderated to 3% in the first half of 2025 after earlier showing a 5% year-over-year increase.
– Coal use increased by just under 17% year-over-year, down from a 20% increase earlier in the year.
– Solar power generation surged by nearly 40% and is expected to surpass hydroelectric capacity before year-end.
– The increase in solar generation (40 TW-hr) nearly offset the increase in coal generation (50 TW-hr) during this period.
– Natural gas generation decreased by 32 TW-hr year-over-year, representing a 3.7% decline in the largest US electricity source.
Recent data from the US Energy Information Agency reveals a notable shift in the nation’s electricity consumption patterns during the first half of 2025. Electricity demand growth is showing signs of cooling, with earlier spikes in usage beginning to moderate. While overall consumption remains higher than the same period last year, the rate of increase has slowed, suggesting a more tempered trajectory for the remainder of the year.
For much of the past several decades, electricity usage in the United States remained relatively stable. That pattern shifted over the last year, largely driven by surging demand from data centers and industrial users. Earlier reports indicated year-over-year growth of around five percent, but recent figures show that pace has eased. Over the first six months of 2025, total electricity demand increased by three percent compared to the same period in 2024.
This moderation in demand has had a direct impact on coal generation. Earlier in the year, coal use was up by approximately 20 percent compared to the prior year. That figure has since dropped to just under 17 percent. While still a significant increase, the slower growth offers a slight reprieve from coal’s steep upward trend. Coal’s environmental and health impacts, along with its rising costs, remain serious concerns. The situation could have been even more favorable had a planned coal plant closure not been reversed due to federal intervention.
In contrast, solar power continues its remarkable expansion, posting a gain of nearly 40 percent over the previous year. Solar is expected to account for the majority of new generating capacity installed in 2025, and it is on track to surpass hydroelectric generation before the end of the year. This growth reflects both market forces and continued investment in renewable infrastructure.
When measured in terawatt-hours, the increase in solar generation, approximately 40 TWh, nearly offset the 50 TWh rise from coal. Natural gas, which remains the largest source of electricity in the US, saw a decline of 32 TWh compared to the first half of 2024. Despite this drop, its dominant share of the generation mix meant the year-over-year change amounted to just 3.7 percent.
(Source: Ars Technica)