ICF Report Projects 9% Surge in US Electricity Demand by 2028

Reston, Va. (September 12, 2024) - ICF (NASDAQ:ICFI), a global consulting and technology services provider, today released a new report that measures and maps electricity demand growth across the U.S. over the next four years and the potential costs to utilities. The report shows that after decades of relatively flat electricity demand across the country, demand could increase by an average of 9% by 2028 while peak demand for electricity could increase by an average of 5% over the same period.

A robust American economy, building and transportation electrification, manufacturing of batteries and fuel cells, data centers, artificial intelligence, and cryptocurrency mining are all contributing to new electric demand that is stressing the electric grid. Demand growth is expected in every region across the country, but the pace of growth will vary by region. The largest increase by far is projected in the mid-Atlantic region, resulting from rapid building and vehicle electrification and demand from data centers. Demand in this region is projected to increase 68% by 2050, compared to the U.S. average of 57%.

While new sources of electricity supply-including utility-scale solar and wind power-could theoretically meet this expected demand growth, there are significant challenges to getting these new sources built, including upgrading the electric grid, realistic timeframes for gaining approvals for new clean electricity projects, and finding suitable locations to build additional clean energy infrastructure.

These challenges, combined with the electricity demand increase, could slow the transition to clean, reliable and affordable electricity. Specifically, the report finds that the cost many utilities pay for electricity could increase by an average of 19% by 2028. Much of the additional costs would be passed on to utility customers.

ICF's report also outlines six key recommendations for utilities to meet these challenges and stay ahead of this growth, including how to establish sophisticated system planning processes, identify ideal locations for renewable energy projects, and consider new distribution grid upgrades. Additionally, the report outlines how utilities can implement innovative customer programs that leverage artificial intelligence to automatically manage and optimize grid-edge technology-including rooftop solar, electric vehicle charging stations, battery energy storage and virtual power plants.

"As the U.S. navigates the surge in electricity demand, utilities have become even more critical in their role of managing demand and ensuring customers have reliable, affordable power," said Anne Choate, ICF executive vice president for energy, environment and infrastructure. "To succeed, they will need to leverage new technologies and collaborate to integrate a balanced mix of new electricity supply and advanced customer programs."

The report leveraged ICF's proprietary, cloud-based renewable energy analytics platform EnergyInsite ™ to measure and map electricity demand growth across the U.S. over time.

ICF is among the oldest and largest energy and climate consultancies in the world. The company partners with the nation's top utilities and developers, along with nearly every U.S. federal agency, state energy office and energy non-governmental organization, providing end-to-end offerings across the energy value chain-from strategy to planning and analysis to implementation.

ICF is the leading provider of energy efficiency, electrification and demand management programs across North America-currently delivering over 250 programs to over 60 utilities including Duke Energy, Con Edison and National Grid. The company is also one of the largest electrification implementers in the U.S., driving innovation and sustainability across industries.

Read more about ICF's energy efficiency and electrification services.

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