To avoid stranded assets, power developers are securing transformer factory slots years in advance. (Reuters)
The shortage: A supply-demand imbalance has pushed transformer prices up 80% over the past five years. Lead times for high-capacity units now stretch up to four years, driven by a 274% demand spike since 2019.
To mitigate risk, developers are paying heavy premiums to lock in manufacturing slots…before they even have a specific project tied to them. The alternative? Transmission lines sitting idle for years.