North America |
The backbone of North America
From supply chain pressures and data centre demand to floating solar, dam safety, and environmental research, North America’s hydropower sector is confronting a diverse range of challenges and opportunities.
consumed by Americans passes through high-voltage transformers at some point. Generally defined as transformers rated above 100MVA, which typically have high side voltages above 100kV, they comprise magnetic cores, copper or aluminium windings, insulating media, and robust steel tanks. Although these have remained relatively consistent over the past century, advances in materials, manufacturing processes, cooling and monitoring systems, and efficiency have emerged over time. Modernisation is a key driver of LPT demand in the US. Many facilities are now upgrading or replacing transformers to extend operational life, address safety requirements, and improve environmental performance. In 2022, the total number of LPTs in the US was
Glen Canyon Dam in Arizona. Hydropower is described as being the backbone of the US power supply. Image: paulista/Shutterstock
HYDROPOWER REMAINS THE BACKBONE of North American electricity supply, according to the International Hydropower Association’s 2026 World Hydropower Outlook. Across the region (including Central America) 652TWh of hydropower was generated from 208GW of total installed capacity in 2025. And while the US added 478MW of capacity, Canada squeezed ahead with 740MW. The US hydropower fleet is among one of the oldest in the world. And with the average project age almost reaching 80 years, it explains why future growth will be focused on upgrading existing facilities. It’s something both US and Canadian governments are keeping in mind by advancing permitting reforms and fast-tracking supportive measures. As many hydropower units require modernisation, the US hydropower sector has been described as being at a ‘critical juncture’’ with a potential challenge in globalised supply chains.
Gap analysis A new report by the National Laboratory of the Rockies
(NLR), called the Hydropower Supply Chain Gap Analysis, has investigated supply chain issues affecting domestic manufacturing for the required hydropower technologies, needed to ensure future clean energy and grid reliability. Specifically, it focuses on the unique challenges hydropower facilities face when upgrading or replacing large power transformers (LPTs). LPTs are critical infrastructure assets of the US electric grid and hydropower fleet. More than 90% of power
20 | September 2026 |
www.waterpowermagazine.com
estimated between 4900-6799. And with the addition of more than 700 LPTs, along with approximately 170 reaching the end of their design life annually, this emphasises the growing need for replacement alongside new installations. However, LPT supply chains are facing increasing pressure from limited domestic production and long lead times. As NLR’s recent report discovered, more than 80% of US demand for LPTs is currently met through imports. This, NPR states, is exposing the sector to trade restrictions, tariff disputes, and global supply chain disruptions. In addition, procurement timelines for new transformers has increased from 12-18 months to 30-36 months, and due to complex engineering requirements of extra high voltage transformer units, the lead time can extend up to 60 months. This creates significant risks for project scheduling and grid reliability while costs are also rising, with 2025 prices of LPT 50-70% higher than they were in 2019. According to the 2026 World Hydropower Outlook,
hydropower growth in the US will also be focused on expanding pumped storage facilities. New projects are gaining momentum and there’s more than 60GW in the development pipeline. However, as NLR warns, the secondary components of pumped storage facilities, such as turbines, hydro generators, and governors, add further vulnerabilities. For example: ● Only a few US facilities are able to forge large shafts or cast runners over 10 tons.
● There are no domestic suppliers of hydro generators larger than 20MW.
● Electronic control systems for excitation and protection are heavily reliant on Asian manufacturing.
The above gaps, NLR says, amplify project risks, especially as pumped storage deployment accelerates to support grid reliability. US policy measures are trying to mitigate these supply chain challenges. The
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