The US Energy Information Administration’s November Short-Term Energy Outlook shows a power system that’s growing fast and changing just as fast. The latest numbers point to rising U.S. electricity demand, with 2.4% electricity sales growth in 2025 and 2.6% in 2026. It may not sound like much, but it’s a trend: the country is using more electricity every year, mostly because of new digital infrastructure and steady growth of energy-intensive industries.
Rising U.S. Electricity Demand
The fastest growth is in the West South Central region, which includes states like Texas, Louisiana, Oklahoma, and Arkansas. These states are attracting data centers, cryptocurrency mining operations, and new industrial facilities, all of which need lots of electricity to run. The EIA says this regional shift is significant because it puts pressure on the local grid and requires new capacity.
Demand is also driving price expectations. According to the report, the national average wholesale electricity price will go from 47 dollars per megawatt hour in 2025 to 51 dollars per megawatt hour in 2026. Texas, which has its own power market, is expected to see some of the largest increases, as demand is rising and reserve margins are tight.
Solar Growth Strengthens the Outlook
On the supply side, the generation mix is changing. Natural gas will provide about 40% of US electricity through 2026, while renewables are gaining ground. The EIA projects renewables at 23-24% of the mix in 2025 and 26% the following year. Solar is the main driver of this growth, and data from the Solar Energy Industries Association supports that. SEIA’s Solar Market Insight report shows record solar installations in several states. Its broader research shows solar is one of the largest shares of new electric capacity added each year.
Together, the EIA and SEIA data show a US power sector that’s growing, getting more renewable, and preparing for more demand. The next few years will show how the grid adjusts to a system that’s using more electricity and adding more solar.