In a concerted effort to address the escalating challenges faced by the energy sector, the National Rural Electric Cooperative Association (NRECA) has aligned with a coalition of energy, manufacturing, and homebuilder groups. Together, they are urging Senate leaders to allocate $1.2 billion in funding for distribution transformers and other critical electric grid components in an imminent energy and water spending bill currently under negotiation.

The coalition, spearheaded by the National Electrical Manufacturers Association and featuring influential entities like the American Public Power Association, Edison Electric Institute, and GridWise Alliance, emphasizes the urgency of countering a distribution transformer shortage. In a joint letter dated January 4, addressed to Senate leaders including Chuck Schumer and Mitch McConnell, the groups stress that investing in manufacturing capacity expansion is essential to bolster the nation's grid reliability and resilience.

This call for action follows the Senate Appropriations Committee's unanimous approval in July, allocating $1.2 billion in repurposed supplemental funding for the Department of Energy’s Office of Electricity. The funding aims to fortify the transformer and critical grid component supply chain through financial assistance, procurement, technical support, and workforce development. NRECA CEO Jim Matheson highlighted the impact, stating, "Accelerating the manufacturing of distribution transformers will help electric co-ops meet the energy needs of 42 million Americans and enhance domestic supply chains."

Before the COVID-19 pandemic, the process of ordering and receiving a new distribution transformer took one year on average. However, due to supply chain complexities and inefficiencies, this timeline has now extended to over two years. The coalition emphasizes the real-world repercussions, including stalled construction projects and challenges for utilities in grid modernization. The coalition leaders stress that robust domestic production is vital for a reliable U.S. grid, reducing dependence on foreign products.

Source: .electric.coop