California, amidst its ambitious plan to build over 2 million new homes by 2030, is encountering a fresh energy challenge that could jeopardize its housing goals. The surge in new home constructions has led to an increased demand for electrical transformers, crucial for powering neighborhoods, but the supply is falling short.

Dan Beans, CEO of Roseville Electric, reveals the gravity of the situation, stating, "What we're actually seeing is anywhere from two years to three years to get a transformer." In 2022, Roseville Electric ordered 500 transformers but received only 18, underscoring the severity of the shortage.

Utilities are now cautioning developers about potential power shortages for new homes and businesses. Chris Ochoa from the California Building Industry Association highlights the impact on homeowners, noting instances where residents are forced to stay in hotels due to delayed power connections.

A U.S. Government Accountability Office report underscores the nationwide nature of the transformer shortage, emphasizing its potential to cause large-scale power outages, especially after disasters. With just one U.S. company producing the steel needed for transformers, the report recommends federal energy officials address this critical issue.

As California moves towards increased energy efficiency standards, the transformer shortage is expected to worsen. The concern extends beyond housing delays, with fears that the energy crisis could harm the state's economy and trigger more blackouts. Roseville Electric is actively seeking solutions, including overseas transformer purchases, to cope with the soaring demand.

Source: cbsnews.com