NEW YORK (Reuters) - The aging U.S. power grid is desperately in need of an overhaul to reduce bottlenecks and avoid a repeat of the 2003 blackout that hit cities in the U.S. northeast and Canada, the North American head of Swiss-based ABB Ltd. (ABBN.VX: Quote, Profile, Research, Stock Buzz) said on Wednesday.
"This is overdue, absolutely overdue," said Dinesh Paliwal, speaking at the Reuters Manufacturing and Transportation Summit in New York.
Paliwal said annual investments in the U.S. power grid have risen in recent years from $3 billion to $5 billion and could increase to $10 billion within a few years.
He said ABB supplies about 50 percent of the equipment for the grid, with a guaranteed life of 30 years, but the average age is 46.2 years.
"This needs to be replaced, as it is becoming a bottleneck," he said.
"I sure hope we learned from the blackout, but a sense of urgency still missing," Paliwal added.
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