Trump's ban on foreign grid components raises industry concerns over cost and practicality

President Donald Trump's executive order aims to protect the U.S. bulk power system from foreign threats by blocking installation of foreign-produced equipment that poses a national security risk, Utility Dive reported.

The order, issued on August 26, grants the Secretary of Energy authority to prevent use of such equipment and to require removal of previously installed components deemed risky, with implementation rules due by December 24, according to Utility Dive.

Industry stakeholders broadly support the goal of securing the grid but expressed concerns that restrictions based solely on geographic origin, rather than functionality and security capability, could impede grid development and increase costs for ratepayers, Utility Dive noted.

Many respondents to the Department of Energy's request for input favored emphasizing functional security controls over country of origin and suggested a phased approach with vendor prequalification to ease compliance, Utility Dive reported.

The industry is projected to spend over a trillion dollars on grid infrastructure, highlighting the importance of balancing security measures with practical implementation, Utility Dive added.