As the Trump administration pumped up cybersecurity protection of the nation's power grid by issuing an Executive Order on May 1 that prohibits the "acquisition, importation, transfer, or installation" of certain foreign-made bulk-power system electric equipment, utilities are now facing new challenges and risks when it comes to procurement and use of such equipment in the U.S. bulk power system.

The executive order specifically targets transformers, reactors, capacitors, turbine controls, protective relays, voltage regulators, automatic circuit reclosers, control equipment used in control centers, and safety instrumentation systems (among other items) used throughout the bulk power system.

For the companies engaged in the transmission and distribution equipment supply chain this creates unanticipated risks and may disrupt pricing and procurement of equipment already in the pipeline, reports T&D World.

In a worst-case scenario, U.S. electric utilities and generation owners may eventually be required to remove or isolate noncomplying equipment that have already been installed.

On the other hand, the executive order may create commercial opportunities for power system equipment manufacturers in the United States and other friendly countries who have recently struggled against competition from China.

By September 28, 2020, the secretary of energy will issue regulations to identify the adversary nations against whom the prohibitions apply. The regulations may also identify the specific manufacturers subject to an adversary's control, and specific equipment and transactions that are outlawed. These regulations are to be issued in consolation or collaboration with OMB, Defense, Homeland Security, and Intelligence.

Source: The White House Official Release; T&D World