The Energy Information Administration on Nov. 12 released its latest short-term energy outlook, projecting a continued upward movement of electricity prices in 2026.
The agency forecast shows the load-weighted average for wholesale prices of electricity in 11 U.S. regions to be $51 per megawatt hour, an 8.5% increase in 2026. Prices have risen substantially since 2023.
Part of the reason for the price increase is the high demand to support data centers and cryptocurrency mining. Supply continues to lag rapidly rising demand.
The Energy Information Administration, a federal agency, says that prices will increase across the country but will rise most in the west south central region in Texas and surrounding states.
Another factor driving up prices will be fuel costs. Natural gas prices are predicted to rise due in part to increases in the export of liquified natural gas despite flat U.S. production growth.
The forecast assumes crude oil prices will drop, causing gasoline prices to fall in 2026, in many places below $3 per gallon. Coal production is expected to be up next year, partly due to the reopening of three mines in the Appalachian region.
Nationwide, the agency predicts that natural gas will continue to be the fuel for roughly 40% of electricity generation, nuclear will contribute 18%, coal 16%, and renewables, mostly solar, 26%.
In New Jersey, natural gas and nuclear energy will continue to account for almost all electricity net generation. The Energy Information Administration reports 2023 usage for electric generation in New Jersey as 49% natural gas, 42% nuclear and about 8% renewables. The state’s last remaining coal generation plants were closed in 2022.
New Jersey consumes more electricity than it produces. The most recent EIA figures for 2023 show the state importing between one-fifth and one-quarter of its electricity.
Contact the reporter, Vince Conti, at vconti@cmcherald.com.
