US should create ‘virtual’ electric transformer reserve amid shortage concerns: NIAC

Robert Walton | Source: Utility DIVE | Posted 09/17/2024

Lead times to procure new transformers have “plateaued,” but rising electricity demand from data centers could stretch them, said Peter Ferrell, NEMA’s director of government relations.

AI generated summary

The National Infrastructure Advisory Council recommends the establishment of a "strategic virtual reserve" of electric transformers by the federal government to address challenges in U.S. manufacturing capacity for these critical grid components. This reserve would serve as a buyer of last resort if domestic manufacturers faced a slowdown in orders, ensuring continuity in electrification efforts and necessary replacements.

The lead time for utilities to obtain new transformers has more than doubled to over 120 weeks, attributed to factors such as increasing energy demand, workforce shortages, and limited domestic production capacity. The report suggests solutions including workforce partnerships, long-term contracts between suppliers and buyers, and various federal incentives to boost production and mitigate the impact of transformer shortages on the nation's grid infrastructure.

Link to Original Article

Please find the link to the full article below. (Please note that content provider might require a paid subscription)

Source Link: https://www.utilitydive.com/news/us-strategic-virtual-reserve-electric-transformers-niac/726934/

Create a free trial account: Sign Up

Grid monitor is free to try. No credit card required

US should create ‘virtual’ electric transformer reserve amid shortage concerns: NIAC

AI generated summary

Link to Original Article

Create a free trial account: Sign Up

Already have an account? Login