July heat drove electricity demand to new highs, data shows

Electricity demand across the lower 48 states in July set two new records, according to data from the Energy Information Administration (EIA) released Tuesday. 

What’s happening: “Hot weather, which increases electricity demand for cooling,” the agency writes, contributed to “coincident peak demand” hitting new highs on back-to-back days during the month — July 28 and 29. 

• Of note: The data represents “a simultaneous snapshot across the entire Lower 48 states,” it says, adding that peaks in individual regions or areas may have occurred at different times. 

Zoom in: In July, nationwide cooling degree days, the primary measure of cooling demand, rose only slightly compared to last year but were nine percent above normal levels, according to National Weather Service data. 

• Just three regions — Pacific, Mountain, and West South Central (full map) — experienced below-normal cooling degree days during the month, suggesting mild temperatures. Everywhere else saw above-normal cooling demand.

Looking ahead: While U.S. electricity consumption was relatively flat from 2005 to 2020, demand has started climbing again, and is projected to grow at a two percent annual rate in 2025 and 2026, according to the EIA’s short-term forecast. 

• Meanwhile, HVAC manufacturer shipments and distributor sales data for July will be released in early September, providing a more comprehensive view of the month’s performance.