New Energy Price Trends

Will electricity prices rise in 2025?

On a global scale, electricity prices in 2025 are expected to rise modestly due to the growing demand for electricity and the continued transition to cleaner energy sources. Renewable energy will play a crucial role in 2025 in meeting demand, with solar and wind leading the charge.

Why did electricity prices increase in 2019?

Since 2019, collected revenues increased by more than 20%, whereas retail sales remained fairly flat, indicating that recent increases in retail electricity prices have been driven principally by rising revenues (costs) (see right panel of Figure 1). Figure 1.

Will electricity prices increase in 2026?

Retail electricity prices have increased faster than the rate of inflation since 2022, and we expect them to continue increasing through 2026, based on forecasts in our Short-Term Energy Outlook. Parts of the country with relatively high electricity prices may experience greater price increases than those with relatively low electricity prices.

How has the energy industry changed since 2019?

Similarly, distribution operations and maintenance (O&M) costs have grown the most since 2019, especially in the West. Utility fuel and purchase power (FPP) costs have risen and fallen with natural gas prices, which comprise roughly 40% of the U.S. electric generation mix.

What is the New Energy Outlook?

The New Energy Outlook presents BloombergNEF’s long-term energy and climate scenarios for the transition to a low-carbon economy. Anchored in real-world sector and country transitions, it provides an independent set of credible scenarios covering electricity, industry, buildings and transport, and the key drivers shaping these sectors until 2050.

Is energy investment still rising if growth rates are down?

Energy investment is still rising, but growth rates are down. Trump's trade and geopolitical plans are adding to energy price volatility. Energy investment is still rising, but growth rates are down. Resolving outstanding administrative and infrastructure issues could allow renewables to boom.