Benjamin Boucher of Woodmac.com reports that electrical equipment remains a significant bottleneck to utility supply chains. He writes:
Electricity consumption in the US remained stagnant without significant growth for the past two decades up until 2021, as a growing emphasis on energy efficiency effectively counterbalanced the increasing demand.
However, in the last few years we have experienced a swift change in demand landscape, pushing electricity demand back into expansion. Load growth, or the increase in power demand over time, has cast a spotlight on the resilience of utility supply chains with crucial electrical equipment, such as transformers and switchgear, already falling into a shortage, resulting in ballooning prices and escalating lead times. […]
Overall, the rapid expansion of energy-intensive infrastructure is expected to continue fueling load growth over the coming years, putting additional strain on supply chains. These dynamics highlight the importance of fortifying domestic supply for crucial equipment rather than heavily relying on foreign imports.
The industry could also see increased resistance to clean energy goals due to the lead times to build clean generation sources and transmission interconnection delays, with the increasing demand likely to require pre-existing fossil fuel generation to meet load demand. As the energy landscape continues to evolve, a balance will need to be struck to ensure clean energy infrastructure continues to expand while meeting the expanding energy demand.
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