Two excellent articles were published over the past two days that highlight the ramifications of electric transformer supply shortages across the United States. On Tuesday, Caleb Harding and Lily Ottinger of ChinaTalk, published an illuminating article articulating the current situation, with some well thought out solutions. Yesterday, Herman Trabish of Utility Dive, posted an informative story on how the burgeoning transformer shortages could impact the North American power grid. Both articles identify potential solutions. Caleb and Lily’s story calls attention to a 2024 study by the National Infrastructure Advisory Council (NIAC). The report outlines a toolbox of potential policies that could provide some reprieve from the shortage. These include tax breaks and technician training programs, incentives to standardize transformer design, trade deals to strengthen supply chains (particularly for grain-oriented electrical steel), and even a strategic transformer reserve. Recognizing both the challenges and opportunities, Hitachi Energy has invested heavily ($1.5 billion globally) in expanding existing and building new transformer manufacturing facilities, with multi-million-dollar investments in factories in Virginia, Pennsylvania, and Missouri. If you haven’t read these reports, I encourage you to follow the links below. They are very informative. Powering Good!
ChinaTalk: Gridlocked: Transformer Shortage Choking US Supply Chains: https://lnkd.in/dXB9q4at
Utility Dive: Transformer supply bottleneck threatens power system stability as load grows: https://lnkd.in/dWyD7vC4
Hitachi Energy to invest additional $1.5 billion to ramp up global transformer production by 2027: https://lnkd.in/d53bYQWy
Kent Knutson
Top Contributor
Transformer shortage – what can be done?
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