Rising electricity demand could keep energy bills elevated

Summary

• BofA Global Research anticipates rising global electricity demand will be met by a mix of generation sources with a larger push toward renewables like solar & wind compared to gas-fired generation.
• Natural gas remains an important source of reliable power, but liquified natural gas supplies can be vulnerable to disruption while solar & wind projects face no ongoing fuel-supply constraints once constructed.
• Rising electricity demand driven by data center growth & residential electrification may keep upward pressure on energy costs for US consumers due to required investments in generation & grid capacity.
• The International Energy Agency & BofA Global Research provided data on estimated global change in electricity generation by fuel from 2021 through 2030.
• Liz Everett Krisberg serves as Head of Bank of America Institute, David Michael Tinsley is a Senior Economist at the Institute, & Clifton White is a Commodity Strategist at BofA Global Research.
• The materials were prepared by Bank of America Institute for general information purposes & do not constitute investment, legal, accounting, or tax advice.