NIAC Urges Federal Government to Create Electric Transformer Reserve to Boost U.S. Manufacturing and Electrification Efforts

The president’s National Infrastructure Advisory Council (NIAC) has called for the federal government to establish a “strategic virtual reserve” of electric transformers to ensure challenges surrounding U.S. manufacturing capacity do not slow electrification efforts or replacement. The reserve would establish the government as a buyer of last resort if domestic manufacturers experienced a slowdown in orders. The lead time for utilities to procure new transformers has more than doubled to 120 weeks or more in recent years, according to the report. The NIAC also recommends increasing production through workforce partnerships, long-term contracts between transformer suppliers and buyers, federal tax credits, grants, accelerated depreciation and other incentives. The report also recommends the U.K. Department of Energy for financial support to incentivise domestic production.