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Natural gas demand for power generation drops in the United States in May 2025

In May 2025, natural gas demand for electricity generation in the United States declined, influenced by cooler weather conditions and a significant increase in solar generation.
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Natural gas demand for electricity generation in the United States experienced a notable decline in May 2025. According to data from the Energy Information Administration (EIA), average gas consumption for electricity generation was 31.5 billion cubic feet per day (Bcf/d) from May 1 to May 30, representing a decrease of approximately 2.2 Bcf/d compared to the same period in 2024.

Weather factors and rising solar generation

Lower-than-normal temperatures reduced air conditioning demand, resulting in a decrease of approximately 1% in overall electricity consumption compared to the previous year. Simultaneously, solar power generation increased by nearly 30% year-on-year, adding around 185 GWh/day to the grid.

Impact on coal-based electricity generation

Higher natural gas prices, averaging $3.11/MMBtu in May 2025 compared to $2.19/MMBtu in 2024, made coal more competitive for power generation. Consequently, coal-based electricity generation increased by 90 GWh/day, partially offsetting the decline in natural gas generation.

Forecasts and Outlook

The Energy Information Administration forecasts a 3% reduction in electricity generation from natural gas in 2025, primarily due to rising gas prices. The share of solar energy in electricity production is expected to rise from 5% in 2024 to 7% in 2025, reaching 8% in 2026.

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