Our grid technology supply chain is a critical vulnerability threatening our nation’s energy independence and economic security. Securing the supply chain for vital grid components like distribution transformers will ensure that our grid provides the reliable power day in and day out that our homes, businesses, and economy need.
The Office of Electricity’s market and system impact analyses support the development of resilient, high-performance equipment that can be manufactured using domestic materials and supply chains and assist stakeholders in understanding the value and impact of improved grid components.
Activities
Electrical transformers are the fundamental building blocks of the electric grid, with distribution transformers bringing electricity to every home, business, or factory in the US. The Covid-19 era revealed supply chain stresses for this equipment, due in part to pent-up post-pandemic demand; difficulty recruiting, training, and retaining a skilled workforce; component supply chain challenges; and materials shortages (grain-oriented electrical steel, aluminum, and copper). The lead times for transformer orders, particularly distribution transformers, increased from three to six months in 2019 to 12 to 30 months in 2023.
In March 2023, DOE convened an industry workshop led by the Office of Electricity with participation from multiple industry stakeholders. The workshop attendees concluded that one contributing factor to the longer distribution transformer production times is the lack of consistent transformer specifications across utilities. DOE identified over 80,000 different distribution transformer varieties nationwide. There are many legacy specifications that utilities could modify if they would accept more universal transformer designs and standard accessories included with the distribution transformers. To identify key interoperability opportunities that would be acceptable to utilities and help reduce production times, DOE facilitated a transformer industry subgroup, which includes a diverse set of utility participants and transformer manufacturers.
The Distribution Transformer Working Group is holding a webinar on March 5, 2026 to present its progress in developing resources to secure the supply chain of these vital grid components.