US Industry Report Sees 35-40% Growth in US Energy Demand by 2040
Yesterday, I received an email from American Clean Power highlighting the key findings of a new study report. The US National Power Demand Study – commissioned by the Alliance to Save Energy, American Clean Power Association, American Petroleum Institute, Clean Energy Buyers Association, National Electrical Manufacturers Association, Nuclear Energy Institute and US Chamber of Commerce demonstrates that there is a real risk of power shortages in the coming year. The report expects US power demand to surge with 35-50% growth by 2040 and says that the next decade will demand more electricity than any ten-year period in the country’s history. It sees the demand growth being led by a surge in data center construction, new manufacturing activity and the electrification of transportation and heating.
The study points out the time gap between bring new power projects online compared to data centers and new manufacturing facilities, which will likely bring the risk of a shortfall. Demand growth, they say, could outpace supply. It urges faster policy action on permitting and interconnection of resources on the grid and suggests that failure to do this may result in some detrimental impacts. These are listed as stifled economic growth, hampered technical innovation and rising energy costs for consumers. While the study pertains to the USA, we believe that a similar scenario exist in Europe where warnings of shortfalls of power supply have also been made as the EU drives electrification and the energy transition.
For those of us in the commodities space – this suggests that activity levels for services and software should also rise hand-in-hand with the required investments in grid and infrastucture to meet these demands. While we saw North American power ETRM sales declining in 2023/4 owing to a combination of competition for funding and end consumer price pain, we also see these potentially easing through 2025/6 as the recognition that new investment is needed and fast.
For those interested in this third-party report, information can be found here.
Keep in touch and sign up to our Newsletter
