Welcome to The Power Source- your go-to weekly newsletter that delivers the latest trends, news and updates in the world of #PowerSolutions. I hope you enjoy the brief and check back for more insights and news each week!
- Demand continues to strain the supply chain. Major electrical equipment- Generators, Transformers, Switchgear from large OEMs have lead times anywhere of 60 months or longer.
- AI users continue to lead the charge of demand for electrical gear, with no let up in sight.
- Mission critical infrastructure, large commercial users and users focused on electricfication continue to drive demand for resilency and redundancy in securing power, putting continued pressure on the industry.
- Innovative companies, like Laurkat Consulting LLC , are helping companies to procure generators, transformers, switchgear and other like-kind electrical equipment QUICKLY. We're also purchasing obsolete gear.
- Utilities may subsidize data center growth by shifting the costs of serving the facilities to residential and other ratepayers, according to a paper released March 5th, by the Harvard Electricity Law Initiative.
- The paper by Eliza Martin and Ari Peskoe argues that while the costs of building power plants and transmission lines are generally shared by all ratepayers, the expenses required to serve data center owners, a small group of customers, may also end up being covered by ratepayers.
- The report, however, also found that “data centers’ increased demand will likely increase system costs for all customers, including non-data center customers … because current utility rate structures are not designed to account for sudden, large cost increases from the construction of new infrastructure to serve a relatively small number of very large customers.” said Lucas Fykes, director of energy policy at the Data Center Coalition.
- U.S. Energy Secretary Chris Wright announced that the Trump administration will prioritize increasing domestic fossil fuel production while still expecting strong growth from solar, wind, and battery storage.
- Wright emphasized the versatility and benefits of natural gas, stating that wind, solar, and batteries cannot replace its myriad uses.
- He also criticized the Biden administration's focus on renewable energy and climate change policies. Despite this, the U.S. Energy Information Administration forecasts significant growth in solar and battery storage capacity in the coming years.
- Ontario has suspended its 25% tariff on electricity exports to the United States after President Trump threatened to double tariffs on Canadian steel and aluminum to 50%.
- The suspension followed a productive discussion between Ontario Premier Doug Ford and U.S. Secretary of Commerce Howard Lutnick.
- However, Ontario's grid operator has kept the tariff response charge at zero, indicating that the tariff could be reinstated at any time.
