On Tuesday, the US Energy Information Administration released comprehensive data on the country's electricity generation in 2025. The findings present a mixed scenario. Demand for electricity increased significantly, partly met through additional coal use, which is concerning. On a positive note, solar energy made substantial gains, producing 35 percent more power than the previous year, and for the first time, it outpaced hydroelectric power.
Shifting Markets
Nationwide, electricity consumption grew by 2.8 percent, equivalent to about 121 terawatt-hours. Historically, consumption has remained mostly stable due to efficiency improvements and industrial decline balancing population and economic growth. However, short-term changes driven by factors like heating, cooling demand, and global events, such as the pandemic, have been noted. The 2025 demand growth is slightly alarming but doesn't yet indicate that long-term growth factors have taken hold.
These growth drivers include the transition to heat pumps, transportation electrification, and the expansion of data centers. Although the first two result in overall more efficient energy use, they replace direct fossil fuel usage, thereby increasing grid demand.
The central story of the year is how this demand was addressed. If demand had increased at a slower pace, the additional 85 terawatt-hours from expanded utility-scale and small solar installations would have sufficed. As it stood, the rise in utility-scale solar production covered about two-thirds of increased demand (or 73 percent, including wind power). With no new nuclear plants on the horizon, increased fossil fuel use became the alternative solution.