After decades of stable electricity demand in the US, a new report from ICF (Nasdaq: ICFI) predicts a significant surge starting this decade.
US electricity demand to surge
The global consulting and tech services provider’s new report, “The Impact of Rapid Demand Growth,” measures and maps electricity demand growth over the next four years, as well as the potential costs to utilities. The researchers leveraged ICF’s proprietary, cloud-based clean energy analytics platform EnergyInsite.
The report shows that US electricity 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 strong US economy, the shift to electric vehicles and buildings, and the rise of battery and fuel cell manufacturing, data centers, AI, and cryptocurrency mining are all pushing electricity demand to new highs, putting added pressure on the grid.
Electricity demand is set to rise across every region of the US, but some areas will see faster growth than others. The mid-Atlantic region is expected to lead the way, driven by a rapid shift to electric buildings and vehicles, as well as surging data center demand. By 2050, demand in this region could jump by 68%, well above the national average of 57%.
ICF’s report asserts that renewables such as wind and solar could meet the expected demand growth, but challenges include upgrading the grid, speeding up the permitting and approvals process, and finding ideal locations for new clean energy infrastructure.
These challenges, along with rising electricity demand, could slow down the shift to clean, reliable, and affordable power. The report reveals that many utilities could see their electricity costs jump by an average of 19% by 2028, and they’ll likely pass on much of that increase to customers.
How to stay ahead of the demand surge
ICF’s report lays out six key recommendations to help utilities tackle these challenges and stay ahead of the demand surge. This includes setting up advanced system planning processes, pinpointing the best spots for renewable energy projects, and upgrading distribution grids.
The report also highlights how utilities can roll out cutting-edge customer programs that use AI to automatically manage and optimize grid-edge technologies, such as rooftop solar, EV chargers, battery storage, and virtual power plants.
Anne Choate, ICF executive vice president for energy, environment and infrastructure, said:
As the US 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.
To succeed, they will need to leverage new technologies and collaborate to integrate a balanced mix of new electricity supply and advanced customer programs.
Electrek’s Take
ICF’s report highlights some really important points. Of course rapid electrification is going to put added demand on the grid. Utilities are going to have to get creative and act quickly to come up with solid strategies to meet that need because the US needs a functional grid.
My utility in Vermont, Green Mountain Power, was the first utility in the US to deploy Tesla Powerwalls to create a virtual power plant. I pay $55 a month to lease two Powerwalls to go with the rooftop solar that we bought from Sunrun. When the power goes out, the Powerwalls come on. When the grid needs some juice, my Powerwalls provide it. I love this program because everyone wins. We get affordable access to Powerwalls for the privilege of backup power. And my Powerwalls help balance the grid during peak demand with clean energy, and that benefits everyone.
It’s just one program, but it’s a great example of the kind of advanced customer program that the ICF recommends should be rolled out across the US. Green Mountain Power shows that it’s possible – in fact, it wants to install battery storage for all 270,000 of its customers by 2030.
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Lectric Ebikes appears to be preparing for a major new product launch, teasing what looks like the next evolution of its wildly popular folding fat tire electric bike. Based on the clues, it looks like a new Lectric XP 4 could be inbound.
In a social media post released over the weekend, the company shared a minimalist graphic reading “XP4” along with the message “Tune in 5.6.2025 9:30AM PT.” That date – this Tuesday – suggests we’re just hours away from the big reveal of the Lectric XP 4.
If true, this would mark the next generation of the most successful electric bike in the U.S. market. The current model, the Lectric XP 3.0, has become an icon of accessible, budget-friendly electric mobility. Starting at just $999, the XP 3.0 offers a foldable frame, fat tires, a 500W motor, a rear rack, lights, and hydraulic brakes – all packed into a highly shippable design that arrives fully assembled. It’s the kind of package that has helped Lectric claim the title of best-selling e-bike brand in the U.S. for several years in a row.
With the XP 3.0 still going strong, the teaser raises plenty of questions. Will the XP 4.0 be a modest update or a major leap forward? Could we see new features like torque-sensing pedal assist, a location tracking option, or upgraded performance? Or is Lectric preparing a more comfort-oriented variant, maybe even with upgraded suspension or even more accessories included standard?
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The teaser image, which features stylized stripes in grey, blue, and black, may hold some clues. One theory is that the colors represent new trim options or component upgrades. Another possibility is that Lectric is preparing multiple variants of the XP 4.0 – perhaps targeting commuters, adventurers, and off-road riders with purpose-built versions. We took the liberty of a bit of rampant speculation late last year, so perhaps that’s now worth a revisit.
At the same time though, Lectric’s penchant for launching new models at unbelievably affordable prices has never run up against such strong pricing headwinds as those posed by uncertainty in the current US-global trade war fueled by rapidly changing tariffs for imported goods.
Previous versions of the Lectric XP e-bike line have seen sky-high sales
Whatever the case, Lectric’s knack for surprising the industry with high-value, customer-focused e-bikes means expectations will be high. The brand has built a loyal following by delivering reliable performance at a price point that few can match, and any major update to the XP lineup is likely to ripple across the market.
As a young and energetic e-bike company, Lectric is also known for throwing impressive parties around the launch of new models. It looks like I may need to hop on a red-eye to Phoenix so I can see for myself – and so I can bring you all along, of course.
Be sure to tune in Tuesday at 9:30AM PT to see what Lectric has in store – and you can bet we’ll have all the details and first impressions as soon as they drop.
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Logo of the Organization of the Petroleum Exporting Countries (OPEC)
Andrey Rudakov | Bloomberg | Getty Images
U.S. crude oil futures fell more than 4% on Sunday, after OPEC+ agreed to surge production for a second month.
U.S. crude was down $2.49, or 4.27%, to $55.80 a barrel shortly after trading opened. Global benchmark Brent fell $2.39, or 3.9%, to $58.90 per barrel. Oil prices have fallen more than 20% this year.
The eight producers in the group, led by Saudi Arabia, agreed on Saturday to increase output by another 411,000 barrels per day in June. The decision comes a month after OPEC+ surprised the market by agreeing to surge production in May by the same amount.
The June production hike is nearly triple the 140,000 bpd that Goldman Sachs had originally forecast. OPEC+ is bringing more than 800,000 bpd of additional supply to the market over the course of two months.
Oil prices in April posted the biggest monthly loss since 2021, as U.S. President Donald Trump’s tariffs have raised fears of a recession that will slow demand at the same time that OPEC+ is quickly increasing supply.
Oilfield service firms such as Baker Hughes and SLB are expecting investment in exploration and production to decline this year due to the weak price environment.
“The prospects of an oversupplied oil market, rising tariffs, uncertainty in Mexico and activity weakness in Saudi Arabia are collectively constraining international upstream spending levels,” Baker Hughes CEO Lorenzo Simonelli said on the company’s first-quarter earnings call on April 25.
Oil majors Chevron and Exxon reported first-quarter earnings last week that fell compared to the same period in 2024 due to lower oil prices.
Goldman is forecasting that U.S. crude and Brent prices will average $59 and $63 per barrel, respectively, this year.
In a bid to keep up with the rapid growth of EVs, Chicago Department of Transportation (CDOT is currently seeking public feedback on a plan called “Chicago Moves Electric Framework.” The city’s first such plan, it outlines initiatives that include a curbside charging pilot through the city’s utility, ComEd, and expanded charging access in key areas throughout the city.
Unlike other such plans, however, the new plan aims to focus on bringing electric vehicle charging to EIEC and low income communities, too.
“Through this framework, we are setting clear goals and identifying solutions that reflect the voices of our residents, communities, and regional partners,” said CDOT Commissioner Tom Carney. “By prioritizing equity and public input, we’re creating a roadmap for electric transportation that serves every neighborhood and helps drive down emissions across Chicago.”
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Neighborhoods on the south and west sides of Chicago experience a disproportionate amount of air pollution and diesel emissions, largely due to vehicle emissions according to CDOT. Despite that, most of Chicago’s public charging stations are clustered in higher-income areas while just 7.8% are in environmental justice neighborhoods that face higher environmental burdens.
“Too often, communities facing the greatest economic and transportation barriers also experience the most air pollution,” explains Chicago Mayor Brandon Johnson. “By prioritizing investments in historically underserved areas and making clean transportation options more affordable and accessible, we can improve both mobility and public health.”
The Framework identifies other near-term policy objectives, as well – such as streamlining the EV charger installation process for businesses and residents and implementing “Low-Emission Zones” in areas disproportionately impacted by air pollution by limiting, or even restricting, access to conventional medium- and heavy-duty vehicles during peak hours.
The Chicago Moves Electric Framework includes the installation of Level 2 and DC fast charging stations in public locations such as libraries and Chicago’s Midway Airport, “supporting not only personal EVs but also electric taxis, ride-hail and commercial fleets.”
Chicago has a goal of installing 2,500 public passenger EV charging stations and electrifying the city’s entire municipal vehicle fleet by 2035.
Electrek’s Take
ComEd press conference at Chicago Drives Electric, 2024; by the author.