Siemens Energy will be investing $150 million to expand its Charlotte manufacturing plant in North Carolina, US, Post expansion, the Charlotte plant will manufacture power transformers, making it Siemens Energy’s first transformer manufacturing unit in the US.
In a release, Siemens Energy said that construction of the factory will begin in this year with the first transformers set to be manufactured in early 2026.
Today, only 20 per cent of US large power transformer demand is met by domestic supply with lead times of up to five years. With the US aiming to reduce emissions by 50-52 per cent from 2005 levels, by 2030, the race is on to decarbonize the US grid. However, that can only realistically be achieved through the availability of transformers, the release noted.
The vital link
Power transformers provide the link between generation and distribution and are a crucial part of any electricity distribution network where they convert high-voltage electricity into lower voltages. Custom built and around the size of a standard school bus, power transformers are essential components in any grid expansion. They enable the reliable transmission of electricity over long distances and help stabilize electrical transmission across regions, the Siemens Energy release explained.
Long-standing presence
Tim Holt, Member of the Executive Board for Siemens Energy, said, “The US energy transition is in full swing, with $3.9 billion pledged to expand and update the U.S. grid within the next two years. However renewable projects and grid expansion can only happen with the availability of transformers. The U.S. market today is mostly served by the Americas and Europe, but as global demand for this critical technology increases, we see the long-term potential to increase our U.S. footprint, building on our long-standing presence in North Carolina where we’ve had operations since 1969.”
Workforce expansion
The Charlotte facility of Siemens Energy currently serves as an energy hub, manufacturing and servicing gas and steam turbines for the power generation market. The facility currently employs around 1,200 people and this number is seen rising to around 1,800, post expansion.
Supply chain issues
Studies predict that 25 per cent of global renewable projects are in jeopardy due to long transformer lead times, supply chain bottlenecks and lack of global transformer production. Siemens Energy’s investment will address these challenges and increase domestic U.S. transformer production.
The energy challenges of today demand flexible grid solutions and transformers that can cope with increased demand and fluctuations that impact grid stability. Siemens Energy has been manufacturing power transformers for more than a century with today’s range delivering well above 1,000 MVA and 1,100 kV, the release added.
Also read: Siemens Records 10 Per Cent Growth In Order Inflow
Featured photograph shows an overview of Siemens Energy’s manufacturing facility at Charlotte, North Carolina, US, which has been in operation since 1969. (Photo: Siemens Energy)
