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Avangrid has announced a $7 million investment to purchase five made-in-USA power transformers from WEG Transformers USA, a manufacturer based in Washington, Missouri. The transformers will be deployed by Central Maine Power and New York State Electric & Gas, two utility companies operated by Avangrid.

The purchase forms part of Avangrid’s broader plan to invest $18.5 billion in U.S. grid and gas infrastructure by 2028, with an emphasis on modernizing and strengthening the nation’s electric grid. According to the company, sourcing domestically manufactured transformers supports U.S. manufacturing capacity while addressing growing infrastructure needs.

Jose Antonio Miranda, CEO of Avangrid, said the investment reflects a commitment to American manufacturing and energy security. Phillip James, Vice President of WEG Transformers USA, noted that Avangrid has been a long-term customer and highlighted the importance of domestic production for critical grid equipment.

The announcement comes amid a widening imbalance between transformer supply and demand in the United States. According to Wood Mackenzie, demand for U.S. power transformers has increased by 116% since 2019, driven by rising electricity consumption, clean energy development, and aging infrastructure. Supply constraints have led to longer lead times and higher prices across the market.

Research from the National Renewable Energy Laboratory (NREL) indicates that distribution transformer supply may need to increase by 160%–260% by 2050 to meet future energy demands, underscoring the scale of investment required to ensure long-term grid reliability.

Source: renewableenergyworld.com