The United States is experiencing a critical shortage of distribution transformers, with the lead time for procuring some types of transformers coming close to two years. Last year, the U.S. Department of Energy (DOE) proposed an energy efficiency standard for distribution transformers that would have required significant changes to manufacturing lines that produce transformers, potentially exacerbating the current shortage.  Multiple stakeholders, from transformer manufacturers to utilities to home builders and electric fleet operators, voiced support for energy efficiency standards but raised concerns about the impact of the transformer shortage on national security and economic development. Today, DOE released a final rule that recognizes these concerns while also promoting improved efficiency in new transformers with an extended compliance deadline.

The GridWise Alliance is still reviewing the final rule, but the new framework will ensure that utilities can continue to make essential investments to maintain the security and reliability of the electric grid. GridWise CEO Karen Wayland stated, “I want to thank DOE for considering the challenges facing the grid industry and for listening to stakeholders in adapting the final rule to provide more certainty to the market for distribution transformers. Our GridWise members look forward to working with DOE to address the transformer shortage in the short term and in continually improving the efficiency of the electric grid over the long term.”

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About The GridWise Alliance:

The GridWise Alliance leads a diverse membership of electricity industry stakeholders focused on accelerating innovation that delivers a more secure, reliable, resilient, and affordable grid to support decarbonization of the U.S. economy. For more information about the GridWise Alliance, visit: www.gridwise.org.