President Donald Trump signed an executive order on Wednesday declaring a national emergency to restrict the use of certain foreign-produced equipment in the United States electricity grid, according to the White House.
Trump Declares National Emergency Over Foreign Power Grid Equipment
The administration cited what it described as an unusual and extraordinary foreign threat
originating in whole or substantial part outside the United States, which impacts national security, foreign policy, and the economy. According to the order, the growing demand for electricity driven by artificial intelligence data centers and advanced technology projects has left the nation increasingly dependent on stable power, making the infrastructure a more critical target.
Restrictions on Bulk-Power System Equipment and Software
The executive order authorizes the Energy Department to prohibit the acquisition, importation, transfer, or installation of foreign-produced bulk-power system equipment if officials determine a transaction involves a covered foreign entity and poses an unacceptable security risk. The bulk-power system comprises the network of high-voltage lines, substations, and power plants that transmit electricity across the country.
The restrictions apply to major grid components and associated software, firmware, and remote-access capabilities. Covered items include: * Transformers * Generators * Battery energy storage systems * Grid-connected inverters * Turbines * Industrial control systems
The administration warned that foreign-built equipment could contain vulnerabilities, such as hidden digital backdoors or rogue communication devices capable of providing remote access to critical infrastructure. The action follows similar technology security measures, such as a decision by the European Commission to ban Chinese-made inverters from publicly funded energy projects, and U.S. expert findings of unlisted communication devices in certain Chinese solar power inverters. Additional details are outlined by Reuters.
Potential Impact on Existing Infrastructure and Utilities
The order extends beyond future acquisitions, potentially forcing utilities and infrastructure operators to isolate, disconnect, replace, or remove equipment already operating on the U.S. grid. However, the directive does not institute a blanket ban on all foreign-made grid hardware.
Before mandating the removal or replacement of in-service equipment, the order directs officials to weigh reliability and safety, the availability of secure replacement parts, and the continuity of essential service. The Energy Department is also empowered to phase in compliance, establish a list of pre-qualified equipment and vendors, and impose conditions on the continued use and operation of targeted devices.
The Energy Department has 120 days to publish implementing rules and regulations, which will provide the power industry with a clearer picture of which suppliers and equipment face restrictions, as detailed by Fox Business.
Federal Procurement Overhaul and Domestic Manufacturing
In addition to regulating commercial utility purchases, the executive order directs the federal government to reconsider how it procures energy infrastructure. Within 180 days, the energy secretary must recommend changes to federal procurement rules aimed at addressing national security risks and prioritizing U.S.-manufactured energy infrastructure.
This provision is expected to shift federal demand away from foreign suppliers and toward domestic manufacturers, supporting broader efforts to secure the supply chain underpinning the U.S. economy. The restrictions align with broader U.S. policies addressing foreign technology threats, echoing prior actions where regulators restricted foreign telecom suppliers over espionage and sabotage concerns, as reported by Inquirer.
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