Powering America's Future: Avangrid Invests in Domestic Grid Tech

ORANGE, Conn. – January 15, 2026 – In a significant move to bolster both the U.S. energy grid and its domestic manufacturing base, Avangrid, Inc. has announced a $7 million investment in American-made power transformers. The purchase of five large transformers from WEG Transformers USA, based in Washington, Missouri, marks a tangible step in the energy giant's broader strategy to modernize critical infrastructure while championing national economic strength.

This investment is an early component of a massive $18.5 billion capital plan Avangrid intends to deploy by 2028, signaling a deep commitment to future-proofing the nation's power supply. The new transformers are slated for deployment within the networks of two of its key utility companies, Central Maine Power and New York State Electric & Gas (NYSEG), directly impacting the reliability of energy delivery to millions of customers.

A Strategic Bet on American Manufacturing

At the heart of this announcement is a deliberate "Buy American" strategy that aims to shorten supply chains and reinvest in the nation's industrial capacity. The decision to source these critical, high-value components from a domestic manufacturer like WEG Transformers USA is a direct injection into the U.S. economy.

"Sourcing these transformers here in the U.S. is a clear investment in American workers and American manufacturing,” said Avangrid CEO Jose Antonio Miranda in a statement. “As we move forward with our plan to direct $18.5 billion in a modern, resilient grid, we’re putting that investment to work in American factories, supporting American jobs, and strengthening the nation’s energy independence.”

The impact is felt most acutely in communities like Washington, Missouri, where WEG operates its manufacturing facilities. Such contracts support skilled manufacturing jobs and reinforce the local economy, creating a ripple effect that benefits suppliers and service providers in the region. For WEG, a subsidiary of a global electro-electronic equipment company, securing contracts with major utilities like Avangrid solidifies its position in a competitive North American market.

“Avangrid is a long-term customer for WEG and we really appreciate the confidence that Avangrid has in WEG to provide transformers for the infrastructure projects of their utility companies in the US,” commented Phillip James, VP of WEG Transformers USA.

This single purchase is part of a larger trend for Avangrid. In 2024, the company grew its investment with U.S. suppliers to $4.3 billion, a notable 16% increase from the previous year, demonstrating a sustained commitment to sourcing from businesses in every state.

Future-Proofing a Grid Under Pressure

The $7 million transformer deal is a microcosm of a much larger, more ambitious vision. It falls under the umbrella of the $18.5 billion infrastructure plan announced by Avangrid’s parent company, Iberdrola, in September 2025. This long-term strategy is designed to address a convergence of challenges facing the U.S. power grid: aging equipment, escalating demand, and the growing threat of extreme weather events.

A significant portion of the nation's grid infrastructure is decades old and was not designed to handle today's complex energy landscape. The plan aims to systematically rebuild and strengthen these systems. Modern transformers, like those being purchased from WEG, are more efficient and incorporate advanced technology, making them better equipped to manage fluctuating power loads, particularly from the integration of renewable energy sources like wind and solar.

Furthermore, the investment is a direct response to surging power demand from new sources, including the rapid expansion of data centers and advanced manufacturing facilities. A robust and reliable grid is a prerequisite for attracting and retaining these high-tech industries, making grid modernization a critical component of regional economic competitiveness. By proactively upgrading its networks in New York and Maine, Avangrid is preparing its service territories for future growth and ensuring the lights stay on for its 3.4 million utility customers.

Enhancing Reliability and National Energy Security

For residents and businesses in Maine and New York, the practical benefit of this investment will be a more resilient and reliable power supply. Power transformers are the backbone of the electrical grid, stepping voltage up or down for efficient transmission and distribution. The failure of a single large transformer can lead to widespread and prolonged outages. By installing five new, state-of-the-art units, Avangrid is directly enhancing grid stability and reducing the risk of service disruptions for its customers at Central Maine Power and NYSEG.

Beyond local reliability, this procurement strategy has profound implications for national energy security. For years, the U.S. has faced concerns over its reliance on foreign nations for critical grid components. This dependence creates vulnerabilities related to geopolitical instability, trade disputes, and lengthy shipping delays that can cripple efforts to repair or expand the grid. By sourcing transformers domestically, Avangrid mitigates these supply chain risks.

This approach also addresses cybersecurity concerns. Domestically manufactured components can be produced under stricter security protocols, reducing the risk of malicious hardware or software being embedded in critical infrastructure. As the grid becomes more digitized and interconnected, ensuring the integrity of its core components is paramount to defending against potential cyberattacks. Avangrid's commitment to U.S. suppliers is therefore not just an economic policy but a foundational element of a more secure and independent national energy posture.