What the new federal energy report means for you

By David T. Stevenson, Director

Center for Energy & Environmental Policy

April 17, 2025

The U.S. Department of Energy has released its 2025 Annual Energy Outlook. The report is based entirely on the Biden administration's energy plan. The good news? These assumptions likely won't hold under President Trump's revised energy policies.

But here's what the report says will happen by 2050 if those policies stay in place:

• The U.S. will produce 16% less energy, which means fewer jobs and a slower economy. Less energy = less growth.

• Electric cars will dominate new car sales (60%), while hybrid vehicles--cheaper and often better for the environment long-term--will stay at today's levels. In fact, in 2024, hybrids outsold electric vehicles by 300,000, even though EVs got up to $10,000 in government subsidies.

• Power demand will surge by 48% as more people charge electric cars and tech companies run AI and data centers (think Alexa, ChatGPT, streaming services, etc.).

• Wind and solar will be asked to meet most of this demand-up to 69% of all electricity. But there's a catch: these systems only last 20-25 years, meaning they'll need to be rebuilt completely-twice-by 2050. Expect power outages and electric bills to jump 60%.

• Offshore wind power (favored by coastal states) will still cost three times more than regular wind or solar but will only provide 3% of our electricity reinforcing why environmentally destructive offshore wind makes no sense.

• Natural gas-our most reliable, affordable power-will be heavily restricted. Plants will only be allowed to run at 40% of their capacity, raising costs and reducing the dependable power we count on. Coal will disappear, nuclear power will drop 5%, and natural gas use will fall 40%.

The Bottom Line

The 2025 energy outlook paints a troubling picture under the Biden plan--rising costs, unreliable electricity, and misguided priorities. However, with President Trump now leading the way, a course correction is underway, promising smarter, more affordable, and more reliable energy for America's future.