EIA Projects Increase in U.S. Electricity Generation Driven by Solar and Hydropower

EIA

The U.S. Energy Information Administration (EIA) has projected an increase in electricity generation for the United States, driven primarily by solar and hydroelectric power. According to the latest Short-Term Energy Outlook released on June 12, 2025, electricity demand is expected to rise modestly this summer, influenced by a surge in commercial and industrial usage, even as household air conditioning needs remain steady.

The EIA anticipates that total electricity generation in the U.S. will grow by 1%, equating to an additional 14 billion kilowatt-hours (BkWh), from June to September compared to the same timeframe in 2024. Although the number of cooling degree days, which indicates demand for air conditioning, is expected to be similar to last year, increased demand from the commercial sector—especially from data centers—will likely elevate overall consumption. The EIA highlighted that “strong load growth forecasts from key grid operators like ERCOT in Texas and PJM in the Mid-Atlantic have led us to adjust our commercial sector electricity demand projections upward.”

In contrast to the rising demand, the share of electricity generated from natural gas-fired plants is projected to decrease. The EIA expects natural gas generation to decline by 3% (23 BkWh) compared to the previous summer, primarily due to high natural gas prices and a significant increase in solar power capacity.

Solar energy continues to gain traction in the U.S. energy landscape, with the EIA forecasting a 33% rise in solar generation this summer, or 30 BkWh, as more utility-scale solar projects become operational. Additionally, improving hydrological conditions in the western U.S. are expected to result in a 6% increase (5 BkWh) in hydroelectric generation.

In summary, the EIA’s outlook reflects a positive trend towards renewable energy sources, particularly solar and hydroelectric power, while natural gas generation is expected to see a decline.

Original article by NenPower, If reposted, please credit the source: https://nenpower.com/blog/eia-projects-increase-in-u-s-electricity-generation-driven-by-solar-and-hydropower/

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