The US is the world’s second-largest energy consumer, behind only China. Of that total, 25% of it comes from electricity. There are many different ways to generate power. the most common way is with combustion engine plants fueled by coal, natural gas, or other fossil fuels. Yet, renewable energy sources are becoming more popular as they hold less risk and cost less to operate. The US has started to invest in these new forms of energy because they are efficient and sustainable. Therefore, it’s possible for the US to increase its renewable energy production even more. This article will thoroughly discuss energy sources and power consumption in the US.
Understanding the Energy Market
Energy supply costs may change throughout the year due to the volatility of the energy market. Louisiana had the highest fluctuating residential energy rate electric costs from September 2020 to September 2021, while North Carolina had the most stable prices.
Aside from that, electricity costs may seem to fluctuate at random. However, there are a few key elements that influence how much you spend.
- time of energy usage – some energy providers provide time-of-use savings
- current month and weather – summer rates might be higher than winter rates in warmer states
- location – energy supply tariffs vary from state to state and even between utility zones within the same state
Energy Demand and Power Consumption in the US
The US consumes and generates a wide range of energy kinds and sources, which may be classified into primary and secondary, renewable and nonrenewable, and fossil fuels. Fossil fuels (petroleum, natural gas, and coal), nuclear energy, and renewable energy sources are all primary energy sources. On the other hand, electricity is a secondary energy source that is created from fundamental energy sources.
Electricity consumption in the US is predicted to increase by up to 30% by 2040. The cost of power is predicted to grow in tandem with the increase in demand for electricity. The average monthly power cost is predicted to reach $253 by 2020.
The US will need to invest in a range of new energy sources to avoid a large spike in power bills. Renewable energy sources such as wind and solar electricity will be important in the future. However, the US will also need to spend heavily on new nuclear and natural gas power facilities. Investing in these new power sources will help keep energy costs down.
Why US has Cheap Energy Source
The US is not the only country with cheap energy sources. However, there are reasons why it has such a low cost of production when compared to other countries. For one, the country benefits from a high-quality workforce, vast domestic supplies of natural gas and oil, and a relatively low level of regulation.
The US transportation infrastructure is excellent. The country does not have to spend much on transporting these resources across country borders. This allows the US to take advantage of its geographic location to get close to emerging markets where there’s a growing demand for our exports.
These factors combine to make US energy sources cheaper than its competitors. It also provides an advantage to the US economy.
Electricity Rates in the US
The average home electricity price in the US in September 2021 was 14.19 cents per kilowatt-hour (kWh), according to the most recent statistics available from the Energy Information Administration (EIA).
It is important to note that average home power prices vary per state. For instance, the average home electricity rate in Washington is 10.40 cents per kWh, the lowest in the nation, while if you live in Hawaii, you’re bound to pay 34.30 cents per kWh.
Below is the list of states with the most expensive residential electricity rates in the US.
|Electric rates in September 2021 (in cents/kWh)
Energy Information Administration: States with the most expensive residential electricity rates in September 2021
Below is the list of states with the cheapest residential electricity rates in the US.
|Electric rates in September 2021 (in cents/kWh)
Energy Information Administration: States with the cheapest residential electricity rates in September 2021
Energy is a fundamental part of life. It powers our homes, businesses, and much more. A lot of energy is used for power consumption in the US. However, the US also has some of the cleanest natural gas sources in North America. It is also one of the largest renewable energy portfolios in the world. As the world shifts to carbon neutrals, the US―as a supra nation―is expected to expand its renewable energy reservoir over the next years.
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