The Department of Energy (DOE) issued a final rule on April 4 regarding energy efficiency standards for distribution transformers, offering some improvements over its proposed rule. However, the American Public Power Association (APPA) and other industry groups argue that the final rule doesn't fully address the pre-existing shortage of distribution transformers.

In a letter to leaders of the House and Senate Appropriations Committees on April 22, the groups emphasized the importance of expanding domestic manufacturing capacity for distribution transformers. The shortage and lengthy lead times for acquiring new transformers—sometimes extending up to 30 months—continue to pose challenges for the industry.

The groups point out that increasing demand for grid components is expected to continue in the foreseeable future, driven by factors such as replacing aging infrastructure and investments in electrification projects like data centers, electric vehicles, and heat pumps. Although the DOE's final rule provides a manageable production framework, further support from Congress is necessary to alleviate manufacturing constraints.

To address supply chain issues and ensure grid reliability and resilience, the coalition is urging Congress to provide resources to bolster domestic manufacturing capacity. Without this support, industry lead times could grow, putting the electrical grid at greater risk.

The letter, signed by APPA and several other organizations, underscores their commitment to working with the DOE and Congress to find sustainable solutions for distribution transformers and other critical grid components. The trade groups aim to engage with Congress during the fiscal year 2025 appropriations process to secure resources and keep America's grid robust and secure.

Source: publicpower.org