The Department of Energy has released its new efficiency standards for distribution transformers that are more moderate than had been presented in the initial prosed standards, both in the time allowed for implementation (now 2029 from the previously discussed 2027) and the extent of the efficiency improvements.  The final standards for efficiency may be achieved by the continued use of grain-oriented electrical steel (GOES) for most of the distribution transformer market applications rather than requiring the performance standard of amorphous steels for 100% of the market.

The National Rural Electric Cooperative Association (NRECA) was one of many industry groups that lobbied for a less aggressive requirement given that the original proposal would have “upended the distribution transformers at a time when manufacturers could not keep up with demand for this critical equipment.”  It also pointed out that the DOE’s initial plan would have “made it difficult for industry to get the essential equipment they need to modernize their systems” highlighting the struggle with current supply chain delays.  Manufacture of amorphous metal cores for distribution transformers requires much more elaborate winding equipment, higher operator skill levels, and annealing of cores.  Larger distribution transformers used for commercial loads and EV charging sites requirements will require amorphous steel once the new standards become effective in 2029.  The organization referenced the risk that the solo domestic supplier of GOES would “leave the market” had the standards required amorphous steel for all distribution transformers, leaving the US without a GOES producer.