The United States is facing a looming crisis in its electric grid supply chain, with shortages of transformers building up over the past two years.
Hurricane season is now approaching, which could cause major problems, and some in Congress are concerned that proposed regulations from the Biden administration could exacerbate the situation. Mississippi Senator Cindy Hyde-Smith has expressed worry about the shortages, noting the skyrocketing costs and long lead times of up to four years. She has also criticized the Department of Energy's new proposed regulation for stricter efficiency standards, which she believes is ill-advised during the current crisis.
Adrienne Lotto, Senior Vice President of Grid Security at the American Public Power Association, has echoed these concerns, stating that members are experiencing severe supply chain constraints and dwindling supplies. Todd Snitchler, President of the Electric Power Supply Association, also worries about the biggest point of concern surrounding larger distribution transformers, which have lead times of up to five years. He believes that the current crisis calls for thinking about the complete energy value chain, including transformers and system requirements. While tighter efficiency standards might be desirable in a vacuum, they are ill-advised in the midst of the current supply chain crisis. The Biden administration should avoid making the situation worse by pushing through such policies during this inopportune time.
Source: forbes.com