Commentary_DOE Next-Gen Transformer Technology

As the nation moves toward electrification, there’s a lot that the U.S. government can do to accelerate a modernized and resilient grid – with regional support and investment.

The (re)electrification of the U.S. economy continues to charge forward thanks to an administration focused on decarbonization and place-based action. Unfortunately, aging grid infrastructure may not be ready to accommodate increasing and unpredictable demand. Two-way traffic from consumers adding power back to the grid and energy flowing from a variety of diverse renewable sources further complicate the problem.

The US needs to produce more electricity to meet decarbonization goals but simply scaling traditional outdated technology may not be the way to get there. Now is the time to rethink our approach to sourcing, manufacturing, managing, and digitizing grid infrastructure equipment. I believe such a reboot will deliver a modernized grid as the country transitions to a clean energy economy. It can stimulate the domestic economy and generate jobs that cannot be outsourced.

Daunting Challenges Create Untapped Opportunities

While an optimized smart grid is an attractive proposition, the US faces significant challenges in getting there. For one thing, utility designs have traditionally focused on centralized generation and transmission, which in turn has kept outdated equipment, bound by traditional contracts, in place.

Shortages up and down the supply chain, including in grain-oriented steel, a critical component of transformers, are further strangling grid expansion efforts. Unsure about future demand or changing federal requirements and politically driven incentives, manufacturers are timid about expanding production or exploring new solutions that may remain niche.

Digitalization of the utility sector will deliver a modern grid that handles increased loads efficiently and facilitates decentralization by adoption of smaller power electronics-based (PE) assets. This equipment delivers additional advantages in form factor and packaging. Interfacing these assets with software enables us to create “smart” grid infrastructure, every element of which can be fine-tuned through data analytics.

Using homegrown science leadership, we need to accelerate grid decentralization and rethink all components to realize a modernized energy delivery system.

The U.S. government can lean on leadership from the Department of Energy (DOE) and its bank of knowledge to effectively and rapidly transition to a digitized modern grid. The Bipartisan Infrastructure Law and similar policies have already set many necessary processes into motion. And the signing of the Defense Production Act for domestic clean energy solutions gives the DOE new resources and authority to lay the groundwork for a modern future-forward energy system.

How the DOE Can Enable Our Decarbonized Future

In light of the resources available to DOE, we can fire on all cylinders and work together to develop a shared path forward toward rapid decarbonization.

Here are a few actions I believe that the DOE can implement right away:

Convene market and institutional stakeholders

DOE should immediately leverage the market convening power of Section 708 of the Defense Production Act (DPA) to work with regional groups—under DOE’s place-based initiatives—such as universities and utility aggregates to define regional specifications for advanced equipment. Having a seat at the table during this process will help utilities and other entities define market needs collectively as we transition to an electrified economy. Such an arrangement could fuel domestic manufacturing of critical electrical grid components and might help small or minority-owned businesses in the process.

Realizing the convening power of Section 708 will also help us explore a wider range of materials to produce transformers and other advanced utility equipment. Amorphous core steel for example has been touted as a popular alternative but it too faces supply chain chokeholds and durability concerns.

Share DOE-sponsored research

DOE should consider creating a central repository of intellectual property (IP) and research that have stemmed from government-sponsored projects. Domestic utilities and related entities can use this research as a benchmark on which to base further progress.

For example, the DOE has invested years of investigation into advanced power electronics that domestic manufacturers can lean on to develop the next generation of advanced equipment. DOE can also identify barriers to adoption of research and have experts on hand who can guide projects. Government-industry collaborations are key in helping the domestic industry grow and stay globally competitive.

Squeeze the most out of existing assets

Regions and service territories should pursue more aggressive asset management and utility planning while exploring or balancing Environmental and Social Governance (ESG) obligations. The DOE should demonstrate how the industry can be more aggressive about asset management and portfolio resizing based on actual usage. Such an approach could also help the country meet its energy efficiency goals – and accelerate the creation of right-sized connected communities.

Make room for advanced technologies

Invest in new technologies including modular and hybrid grid designs and smart artificial intelligence (AI)/machine learning (ML)-driven systems. AI/ML data analysis can deliver more granular insights to customers who can then make more informed decisions about energy usage.

Transformers too can use AI-driven analytics to distribute loads depending on appetite and forecast. Load restructuring and typology optimization are just two of the many smart strategies that can pave the way for an optimized grid infrastructure that leverages data as a mechanism to improve operations.

Weave cybersecurity into all processes

DOE needs to accelerate the digital transformation of grid infrastructure while solving for the cybersecurity challenges that arise from software-driven operations. Cybersecurity should be lock-step with production processes at every stage—right from development to implementation. It needs to be core to all solutions rather than a feature that’s “bolted on” at the very end.

Focus on domestic resources and grow talent at home

DOE can help develop workforce and job-training programs that support domestic manufacturing and the operation of smart electrical grids. Nurture a diverse workforce that is representative of all Americans.

Lighting the way forward

Tomorrow’s power generation will look much different than today’s. DOE must lead the charge by convening market players, including utilities and regional institutions, to define robust standards and spur domestic industry to thrive. Robust and secure two-way energy management solutions are not a pipe dream. They can form the scaffolding for our electric grid of tomorrow if we explore all options and seek solutions that improve performance, resilience, and reliability.

Regional institutions such as Georgia Tech have a deep bench of knowledge that both government and industry can draw from to their advantage. GT’s Energy Policy and Innovation Center (EPICenter) has made the future’s smart and reliable grid infrastructure its cornerstone.

Georgia Tech stands ready to help DOE and regional communities explore all viable options and lay the necessary groundwork for both short-term energy needs and long-term resilience. We can together ensure that all people benefit from (re)electrification and from our green energy future.