Insight

Executive Order 14421: Managing the Risk of a Ban on Chinese Grid Equipment

Articles

The nation’s electric grid depends heavily on foreign-made equipment, much of it from China. Depending on how the Dept. of Energy (DOE) chooses to implement Executive Order 14421 through its pending rulemaking for national security purposes, it has the potential to prohibit fully any Chinese-made equipment on the transmission grid.

The significance of Executive Order 14421 cannot be overstated. For owners, operators, lenders, and builders, the question now is how to manage the risk while the rules take shape. That could be disastrous for efforts to maintain and build out the system, not only for load growth but for existing load.


This information is provided by Vinson & Elkins LLP for educational and informational purposes only and is not intended, nor should it be construed, as legal advice.

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