President Trump has declared a national emergency aiming to block utilities from connecting some foreign-made equipment to the U.S. electric grid.
Mr. Trump said in his executive order, which he signed Wednesday, that certain foreign actors are creating and exploiting vulnerabilities in the U.S. bulk-power system, constituting an “unusual and extraordinary threat.”
The mandate prohibits the use of foreign-produced bulk-power system electric equipment for the grid if doing so poses a risk to grid security or electricity supply.
“The rapid growth of advanced manufacturing, data centers, artificial intelligence, and defense production has increased the Nation’s dependence on abundant, reliable electricity and magnified the consequences of a successful attack or supply disruption on the bulk-power system,” the order reads.
The Energy Department still has to identify which vendors and equipment pose a risk, as the order sets the framework rather than an immediate prohibition.
It lets Energy Secretary Chris Wright evaluate the continued use or updating of installed foreign-manufactured or operated bulk-power system electric equipment, provided it does not compromise safety or service continuity.
Mr. Trump also cautioned that continued reliance on foreign sources of bulk-power system electric equipment with potential national security vulnerabilities creates a supply chain vulnerability that could “eliminate the supply of these products in the United States as a result of disruptions in international trade or other causes.”
The restrictions apply broadly to certain bulk-power system components, including transformers, substations, battery energy storage systems, utility-scale inverters, circuit breakers and industrial control electronics, as well as their digital software and firmware.
While no foreign nation is named in the order, it heavily affects grid components tied to China and multiple other embargoed or sanctioned nations.
China controls roughly 80% of the global manufacturing capacity for solar components and over 80% of all lithium-ion battery cells, according to the International Energy Agency.
This order follows a series of cyberattacks on U.S. water utilities in recent years — including intrusions linked to Iranian and Chinese hacking groups — that have forced some facilities to revert to manual operations.
A nearly identical 2020 order from the first Trump administration addressed the same issue but stalled under former President Joseph R. Biden. This new order revives and expands it.
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