Transformer Shortages Threaten Grid Reliability Amid Renewable Energy Boom

A critical shortage of power transformers is creating a major bottleneck for global energy security and the clean energy transition, according to industry analyses. Utilities face escalating costs and project delays, with U.S. imports expected to supply 80% of power transformers in 2025. Wood Mackenzie reports U.S. demand for power transformers has surged 116% since 2019, far outpacing domestic manufacturing capacity. Lead times are stretching due to underinvestment, post-pandemic construction, and volatile material costs for grain-oriented electrical steel and copper. Hitachi Energy is investing $1 billion in new U.S. capacity but notes it is "probably not enough to close the gap," leaving some utilities struggling to secure supply.