Why Transformers Matter?
- Dan Lee
- Mar 24
- 2 min read
Updated: Sep 4
"The massive growth in data centers will require what is called three-phase, dry-type transformers… the growth in public electric vehicle (EV) charging stations will require additional three-phase, oil-immersed transformers. And building electrification and at-home EV charging will require significant up-sizing of single-phase transformers.”
— Killian McKenna, Researcher, National Renewable Energy Laboratory (NREL)
As the pace of electrification accelerates across the U.S., core components of the power system are coming under increasing pressure — and among the most critical, yet often overlooked, are transformers.
Whether you're installing a 100kW rooftop solar system or a 1,000MW combined cycle power plant, the importance of these electrical infrastructure components cannot be overstated. Transformers are essential to power delivery, and their availability can significantly influence project schedules, construction costs, and overall grid reliability.
Meeting Sector-Specific Demands
Recent insights from the National Renewable Energy Laboratory (NREL) highlight the varying transformer needs across sectors:
Data Centers require high-capacity, three-phase dry-type transformers to support dense, continuous loads.
Public EV Charging Stations depend on oil-immersed, three-phase transformers capable of managing fast charging operations at scale.
Residential Electrification and at-home EV charging are driving the need for larger, upgraded single-phase transformers to support increasing loads at the distribution level.
These sector-specific demands are converging at a time when domestic manufacturing is already under strain, leading to longer lead times and procurement backlogs.
Implications for Project Delivery
While often considered background infrastructure, transformer procurement and installation have become project-critical factors in both distributed and utility-scale development.
Key implications include:
Longer lead times (often 12–24 months or more) impacting commissioning schedules
Increased costs due to supply chain constraints and raw material volatility
Higher risk exposure for developers and EPC contractors, particularly where grid interconnection timelines are tight
Coordination challenges between project teams and utilities in securing and sizing appropriate transformer equipment
For many projects, transformer planning now begins at the feasibility stage — not after design — to mitigate risk and ensure timeline alignment.
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