Potential Impact of Executive Order 13920 on Energy Storage

In September 2019, the US Trade Representative imposed tariffs on Li-ion batteries imported from China that are used in stationary energy storage systems.

Earlier this month President Trump signed an executive order on Securing the United States bulk power system that lays the groundwork for a ban on power grid equipment from foreign adversaries posing a national security threat, according to the Energy Storage Association trade group.

These actions raise import issues related to certain energy storage equipment potentially with regard to China.

US government action to protect power grid potentially impacts energy storage

The recent Executive Order 13920 orders the US Department of Energy to issue regulations in the next six months regarding transmission system reliability due to potential risks related to cyberattacks or other threats.

The order covers bulk power system electric equipment if DOE determines it would pose a national security risk and a foreign adversary is involved in the supply chain.

Utility-scale energy storage developers should monitor market developments, develop diversified and advanced supply chain strategies and conduct due diligence on system sub-components, Andy Klump, CEO of global advisory company Clean Energy Associates, said.

Initially storage developers relied on "wrapped solutions" from system integrators, but the future will require more focus on sub-components, Klump said.

Read the full S&P Global Platts article, US government action to protect power grid potentially impacts energy storage.