Key facts
- President Donald Trump issued an executive order restricting foreign-made grid equipment.
- The order aims to address national security vulnerabilities posed by foreign-made bulk-power systems.
- Renewable energy projects have been delayed and risk cancellation due to the order.
- The restrictions are expected to increase costs for energy developers.
- Chinese suppliers are particularly affected by the new regulations.
- The order declares a national emergency related to the foreign supply of electric equipment.
U.S. President Donald Trump has issued a sweeping executive order restricting the use of certain foreign-made electricity grid equipment, a move that is causing delays and potential cancellations for renewable energy projects. The order, citing national security concerns and an "unusual and extraordinary foreign threat" from foreign-made bulk-power systems, specifically targets equipment that could pose cybersecurity or operational risks. This action places Chinese suppliers in a precarious market position and is expected to drive up costs for energy developers. The White House stated that the order bars the purchase or installation of specific foreign-produced equipment, including associated critical software and digital capabilities. Additionally, the U.S. Energy Secretary is tasked with imposing conditions on the continued use and operation of such equipment already in place. The order follows similar actions by the European Commission earlier this year and previous reports by Reuters regarding security concerns found in Chinese solar power inverters.