American Industries Bought Less Electricity in 2015, Says EIA
03/14/2016 - For the fifth year in the past eight, U.S. electricity sales have fallen, with declining industrial demand partly to blame, according the U.S. Energy Information Administration.
According to the administration, total U.S. electricity sales fell 1.1 percent in 2015 from the previous year. The administration said the flattening of sales also is attributable to stagnant demand from the residential and commercial sectors, despite that the number of households and the amount of commercial building space is increasing.
“Declining rates of electricity demand growth reflect a combination of factors, including the market saturation and increasing efficiency of electricity-using equipment, a slowing rate of economic growth, and the changing composition of the economy, which has reduced the role of electricity-intensive manufacturing,” the administration said.
Industrial electrical sales have dropped, on average, 0.7 percent each year between 2000 and 2015. Whereas the industrial sector once accounted for 31.2 percent of electricity sales in the U.S., it now accounts for 25.8 percent, the administration said.
“Electricity use in the industrial sector has historically been sensitive to economic conditions as the industry responds to changing demand for goods. The sector experienced a 9.1 percent year-over-year decrease in electricity use in 2009, during the 2008–09 recession, and electricity sales have declined at an annual rate of 0.9 percent from their peak in 2007 to 2015,” the administration reported.
“Declining rates of electricity demand growth reflect a combination of factors, including the market saturation and increasing efficiency of electricity-using equipment, a slowing rate of economic growth, and the changing composition of the economy, which has reduced the role of electricity-intensive manufacturing,” the administration said.
Industrial electrical sales have dropped, on average, 0.7 percent each year between 2000 and 2015. Whereas the industrial sector once accounted for 31.2 percent of electricity sales in the U.S., it now accounts for 25.8 percent, the administration said.
“Electricity use in the industrial sector has historically been sensitive to economic conditions as the industry responds to changing demand for goods. The sector experienced a 9.1 percent year-over-year decrease in electricity use in 2009, during the 2008–09 recession, and electricity sales have declined at an annual rate of 0.9 percent from their peak in 2007 to 2015,” the administration reported.
