EIA Expects Less Electricity Demand this Summer, More Generation from Renewables

The U.S. Energy Information Administration expects a slightly cooler summer in 2023 will lead to less demand for air conditioning than in 2022. The result will slightly reduce overall electricity demand this summer. EIA expects that despite less electricity demand this summer, more electricity will be generated from renewable sources and natural gas throughout 2023. EIA forecasts this summer will see the second-most U.S. natural gas consumption for electricity generation on record, surpassed only by last summer. EIA continues to expect significant growth in U.S. electricity generation from wind and solar, but the wet winter in California and the western United States should also increase electricity generated from hydropower during the coming months. EIA expects U.S. retail electricity costs will remain higher than before the COVID-19 pandemic. Those higher prices mean that even if households consume less electricity, their electricity bills will likely be similar to or slightly higher than last summer.