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US ban on foreign inverters, BESS and transformers
Estimated reading time: 4 minutes · Last updated:
President Donald Trump signed an emergency executive order that bars imports of grid-connected inverters, transformers and battery energy storage systems (BESS) when the equipment is tied to transmission circuits of 69kV or higher. The measure targets kit that came from, or is owned or controlled by, entities in 24 countries on US sanctions or arms-embargo lists and applies to deals initiated after 26 August 2026; the Department of Energy has 120 days to publish implementing rules. As first reported by PV Tech, the order invokes a national-emergency finding tied to perceived risks to the bulk-power system.
Certain foreign actors are increasingly creating and exploiting vulnerabilities in the United States bulk-power system,
President Donald Trump
Key takeaways
- Scope: The order covers devices used on transmission lines rated 69 kV or above, and it applies to transactions initiated after 26 August 2026.
- Countries covered: It applies to equipment supplied by entities based in 24 countries that are presently subject to U.S. arms embargoes or sanctions.
- DOE timetable: The Department of Energy must issue rules to carry out the executive order within 120 days.
- Implementation options: Norton Rose Fulbright said DOE could issue a pre-qualified vendor white list, set up licensing or require isolation or removal of equipment already in use.
Table of contents
What the order prohibits and how it defines scope
The executive order instructs federal authorities to block the import of certain power-system components that the administration says could pose risks to US grid security. Covered items include grid-connected inverters, transformers and battery energy storage systems, but only when those devices are used on transmission circuits of 69kV or above; distributed generation and local distribution equipment are excluded from the ban.
The restriction applies to equipment that originated in, or is owned, controlled or directed by, entities in the 24 countries listed under current US arms embargo or sanctions rules. It also sets the effective universe by reference to contract timing: the ban targets transactions "initiated" after 26 August 2026, rather than retroactively prohibiting every existing asset.
How the Department of Energy could put the ban into practice
The order itself does not immediately block sales; it gives the Department of Energy a 120-day window to write regulations and determine which equipment constitutes an "unacceptable risk" on cybersecurity, remote access or sabotage grounds. That implementation phase is where the practical effect will be set: technical definitions, testing requirements and compliance procedures must all be written by DOE.
Law firm Norton Rose Fulbright suggested implementation options in public commentary, saying "DOE may decide to issue a white list of pre-qualified equipment and vendors. It may also set up a process to issue licenses to power companies that want to use sensitive equipment," and that the department "could order equipment already in use to be isolated, monitored or removed." Those are statutory pathways the DOE can use but each would impose different compliance burdens on utilities and developers.
What this means for wind and other grid-connected projects
Developers of grid-scale wind and hybrid projects must now check supplier provenance for inverters, transformers and BESS components that will sit on 69kV+ transmission. Procurement teams that relied on offshore supply chains will face either rapid vendor changes or the need to apply for DOE licensing regimes if those are offered; both paths can delay commissioning.
The move follows recent US action on inverter sourcing by the Federal Communications Commission and broader concern about remote-control capabilities embedded in modern power electronics. For wind projects that integrate large IBR (inverter-based resource) clusters and utility-scale storage, the practical impacts will turn on the DOE's technical definitions and on how quickly manufacturers can certify alternate supply chains compliant with the new rules.
| Item | Covered? | Threshold | Notes |
|---|---|---|---|
| Grid-connected inverters | Yes | 69kV+ | Subject to DOE risk determination |
| Transformers | Yes | 69kV+ | Includes equipment owned/controlled by entities in 24 countries |
| Battery energy storage systems (BESS) | Yes | 69kV+ | Covered alongside inverters and transformers |
Bull and bear cases for grid projects and supply chains
The case for
- If DOE adopts a licensing or whitelist approach, existing projects may secure temporary approvals and avoid wholesale retrofit, limiting delays.
- The order could accelerate onshoring and qualification of alternative suppliers, creating resilient domestic supply options for inverters and storage components.
The case against
- If DOE requires removal or isolation of in-service equipment, operators could face costly retrofits and forced outages for compliance work.
- Tighter procurement rules and longer vendor qualification timelines could push back commissioning for projects that depend on 69kV+ interconnection equipment.
What to be careful about
- Unclear technical definition of what constitutes equipment that "interacts with" 69kV+ transmission, creating legal and procurement uncertainty.
- A licensing or whitelist regime could favour large incumbents with compliance resources and disadvantage smaller developers and OEM suppliers.
- Supply-chain disruptions if major manufacturers are treated as entities owned or controlled by sanctioned countries, reducing available inventory.
The bottom line
The executive order tightens US control over key power-electronics and storage imports by linking prohibitions to 69kV+ transmission equipment and to provenance tied to 24 sanctioned countries. The near-term consequence for project owners will be uncertainty until DOE issues rules over the coming 120 days; the long-term effect depends on whether the department adopts a permissive licensing/whitelist approach or enforces removal and isolation requirements. For wind and other large-grid projects, the practical task is clear: review supplier chains now, identify assets that sit on 69kV+ circuits and prepare to respond to DOE's forthcoming technical guidance.
What to watch
- Watch for the Department of Energy's implementing rules; the department has 120 days to publish them and no specific publication date has been set.
- Watch for DOE guidance on whether it will issue a whitelist of pre-qualified vendors or a licensing process; no date has been set.
- Watch for any DOE determinations that installed equipment "poses an unacceptable risk," which could trigger isolation, monitoring or removal; no date has been set.
Frequently asked questions
Which equipment does the order cover?
The order covers grid-connected inverters, transformers and battery energy storage systems that interact with transmission lines of 69kV or greater.
When does the ban apply to transactions?
It targets deals "initiated" after 26 August 2026, so contracts begun after that date fall within the order's scope.
How long before the Department of Energy issues implementation rules?
Within 120 days, the Department of Energy is required to publish implementing regulations for the executive order.
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