FERC 2024 US Energy Market Trends and Fundamentals

This whitepaper presents key insights from FERC into the 2024 electricity and natural gas markets, focusing on price trends, infrastructure developments, and policy changes. The report on 2024 market trends and fundamentals highlighted significant declines in average wholesale electricity prices by 23% compared to the five-year average, driven by changing supply conditions and lower natural gas costs. Natural gas prices at major hubs also declined, with the benchmark at Henry Hub averaging $2.25 per million cubic feet, a 10% drop from 2023. Natural gas demand grew by 0.5%, with the U.S. remaining a net importer from Canada. Electricity consumption rebounded by 2.8%, with significant new generation capacity added, particularly in solar and natural gas. Demand growth slowed to 0.5%, with the electric power sector consuming a record-high 37 Bcfd. Net exports decreased by 2.5%, while LNG exports slightly increased due to new capacity additions.  Transmission investments increased by 2%, with over 450 new projects entering service.