Wholesale electricity prices lower and more stable in 2024

AI generated summary

Wholesale electricity prices in the U.S. were lower in 2024 compared to 2023, with reduced price volatility, attributed to the expansion of solar and battery energy storage alongside stabilizing natural gas prices. The Energy Information Administration (EIA) stated that wholesale electricity prices were not only lower but also more stable in 2024. This stability was largely due to declines in natural gas prices and the growth of low-cost renewable energy resources combined with battery energy storage capacity.

Despite the decrease in wholesale electricity prices, retail prices paid by consumers continued to rise, increasing at an average rate of 2.5% per year from 2014 to 2023. However, recent years have seen even higher price hikes. From 2019 to 2023, average U.S. electricity rates climbed by 4.8% annually. EIA's most recent data showed that retail residential electricity rates went up moderately from $0.165 per kWh in October 2023 to $0.169 per kWh in October 2024, marking a 3% increase.