On December 28, 2022, the U.S. Department of Energy (DOE) proposed new energy-efficiency standards for three categories of distribution transformers to improve the resiliency of the power grid, lower utility bills, and reduce CO2 emissions.[1] Current efficiency standards apply to liquid-immersed, low-voltage dry-type, and medium-voltage dry-type distribution transformers. The proposed rule would amend the energy conservation standards for all three categories. Under the new standards, almost all transformers produced would feature amorphous steel cores, which are more energy efficient than those made of traditional, grain-oriented electrical steel.

According to the DOE, the proposed standards would reduce CO2 emissions in the U.S. by 340 million metric tons over the next 30 years. The DOE also expects the proposed rule to generate over 10 quads of energy savings and approximately $15 billion in savings to the nation from 30 years of shipments. If adopted within DOE’s proposed timeframe, the new rule will come into effect in 2027. The agency will host a public meeting to solicit stakeholders' feedback on the proposed rulemaking on February 16, 2023.

[1] https://www.energy.gov/articles/doe-proposes-new-efficiency-standards-distribution-transformers