US power bottlenecks drive alternative energy demand
Tariffs and supply constraints on electrical transformers are driving power bottlenecks, benefiting alternative power generation providers.
The argument
The guest argued that while 80% of AI chips are exempt from tariffs, only 20% of the power build-out is exempt. This has doubled the price of combined cycle gas turbines and created a three-year backlog, forcing operators to turn to alternative fuel cells and repurposed engines.
The thesis, stress-tested
✓ What validates it
- ✓Continued rise in the price per megawatt of combined cycle gas turbines
- ✓Further backlog extensions for major turbine manufacturers
▸ Risks discussed
- ▸Potential invocation of the Defense Production Act to compel turbine production
- ▸Changes in tariff policies or exemptions
Hear it yourself
"So by hook or by crook, around 80% of semiconductors and related things are not subject to these tariffs, But only 20% of the kind of power build out is subject to those exemptions."
00:00 / 00:13
AFFILIATE LINK · ZORTIX MAY EARN A COMMISSION · NEVER A RECOMMENDATION TO TRADE