The U.S. electroindustry plays a pivotal role in driving America’s energy future, a responsibility that grows more critical as the nation’s demand for electricity accelerates.  To ensure the grid of tomorrow is prepared to meet the demands of this transformation, NEMA has published a Roadmap for a Resilient and Innovative U.S. Electrical System to chart a clear path to strengthen American leadership on electrification, grid resilience, and energy leadership.

Unleashing American Innovation to Build a Resilient Grid 

Since taking office, President Donald Trump has declared a National Energy Emergency, issuing executive orders to tackle fuel shortages, meet rising energy demand, and manage extreme weather events that currently challenge the U.S. power grid. "There's clearly a recognition of the need to increase energy production broadly in the United States and do it with whatever resources necessary," Spencer Pederson, NEMA Senior Vice President, Public Affairs told Reuters.

However, several hurdles remain, including shortages of electrical transformers, with distribution transformer lead times exceeding 30 months. Recent disasters like hurricanes and California wildfires have exacerbated these delays. To address these challenges, Congress must take immediate action to implement comprehensive permitting reform and create policy incentives and regulatory certainty for manufacturers of critical grid infrastructure.

Another piece of the supply chain puzzle is ensuring manufacturers can make informed decisions that align with Build America, Buy America (BABA) requirements. NEMA’s Make it American program offers precedent-setting resources, standards and certifications to help companies navigate the complex domestic content landscape and deliver critical electrical products to meet rising energy demand. NEMA is leading the way in providing manufacturers the resources they need to Make it American.

Tax Certainty for Energy Security 

In addition, the electroindustry needs tax certainty to foster growth and innovation. The push to extend specific IRA tax credits has found strong bipartisan support, with lawmakers from both sides of the aisle recognizing their importance in driving economic growth, creating millions of jobs, and boosting energy infrastructure. A recent report by American Clean Power found that existing tax incentives deliver a 4X return on taxpayer investment across our energy landscape.

One key initiative addressing grid modernization challenges is the CIRCUIT Act, introduced by Senators Catherine Cortez Masto (D-NV) and Jerry Moran (R-KS). The bipartisan legislation aims to expand production of electric distribution transformers by providing tax credits for manufacturers. "Our bipartisan legislation to boost the production of distribution transformers is critical for lowering energy costs, supporting energy resiliency, and strengthening our national security," said Senator Cortez Masto.

Preserving and expanding key IRA tax incentives like 45x is vital for driving continued investment in technologies that will underpin the grid of the future. However, none of this progress will be possible without a robust pipeline of skilled workers.

Skilled Workers to Power Our Grid 

With a wave of retirements expected in the power industry within the next 5-10 years, workforce development has emerged as the linchpin to achieving the vision outlined in NEMA’s roadmap. Expanding apprenticeship programs, leveraging federal workforce programs, and advancing comprehensive workforce development legislation are critical steps in equipping the next generation with the technical skills needed to sustain and grow U.S. manufacturing leadership.

Each of these issues—tax certainty, grid resilience, supply chain security, and workforce development—are interconnected and can be addressed holistically. The electroindustry looks forward to working in partnership with the Trump Administration and Congress to expand our electrical grid to meet unprecedented growth in demand through harnessing U.S. manufacturing, innovation, and resources. Together, we will power a brighter, stronger tomorrow.