Why Should Grid Businesses Invest in Renewable Energy Transformers?

Highlights:

• Introduction
• Potential of renewable energy transformers
• Advanced technologies in renewable energy transformers
• Recent trends
• Major collaborations and partnerships

A crucial participant in the world’s transition toward sustainable power generation, renewable energy transformers play a significant role in the production, distribution, and integration of power from renewables such as wind, solar, hydropower, hot water, or biomass sources. The reliable and efficient installation of renewable transformers is essential for the electricity infrastructure required to connect renewable energy sources to the grid network. To meet the surge in demand for clean energy and reduce the carbon footprint of power generation, they play an essential role in promoting the transition to a more sustainable and environmentally friendly energy system.

The surge in rate of energy consumption has influenced the demand for renewable energy transformers in various commercial end-user industries. This includes sectors such as hospitals, healthcare, government organizations, educational institutions, transportation, storage facilities, and department stores. The daily increase in energy consumption is attributed to the ongoing trend of digital transformation. The global renewable energy transformer sector is expected to cite a notable CAGR of 7.1% by 2032.

How smart renewable energy transformers have changed the renewable energy transformer sector landscape?  

Electricity generation in variable renewable energy (VRE) installations have intermittent and volatile profiles with rapid & sharp peaks and drops. Owing to anticipated increase in rooftop solar installations in the coming years, more consumers are expected to sell electricity to the grid during the day when they generate more than they need and withdraw electricity from the grid during the night when their generation is almost zero.

Implementation of Internet of Things (IoT) technologies aid in real-time data collection on power system performance. Power companies use these data reports to proactively identify and address potential issues before they lead to system outages and downtime. Integration of AI and machine learning with IoT technologies allows advanced component usage modeling and warning systems, enhancing the ability to predict grid vulnerabilities. This advanced diagnostic capability assists in optimizing operations and maintenance (O&M) costs by facilitating better scheduling maintenance and operational work scheduling. As a result, the smart renewable energy transformer deployment contributes to increased efficiency in the existing power grids while concurrently reducing the O&M costs for transmission and distribution utilities.

Which prominent trends fuel the growth of the renewable energy transformer sector?

• Robust need for distribution transformers to enhance efficient energy usage

As electricity consumption rises globally, the importance of energy efficiency is increasingly recognized. The surge in the number of electrification projects and infrastructure development have generated numerous avenues for companies in the power transformer industry. Hence, distribution transformers have experienced increased utilization to improve energy efficiency in residential areas, including pumping stations, individual houses, and farmyards.

• Widespread application in industrial and manufacturing machinery

The global economic expansion has led to extensive industrialization in both developed and developing nations. As a result, distribution transformers at the consumer end of the meter transmit a considerable proportion of the electricity used in commercial and industrial installations.

Since large machinery and equipment dominate the industrial sector, transformers have become immensely popular for providing high voltage. These transformers are utilized in a wide range of equipment in various sectors, ranging from substations and power plants to industries, such as aerospace, biochemical, manufacturing, and telecommunications.

How are key players adopting novel strategies to maintain top positions?

The global renewable energy transformer sector is highly competitive, and top entities invest in R&D activities to discover innovative products. Here are notable recent developments in the renewable energy transformer industry:

Hitachi Energy's advanced OceaniQâ„¢ solutions contributed to the growth of offshore wind power in China

In July 2022, Hitachi Energy provided its PASS (hybrid switchgear Plug and Switch System) and advanced WindSTARâ„¢ transformers for the offshore wind power project in China. These innovations ensure the wind farm's consistent and reliable operation at a voltage of 66 kV(kilovolt) by promoting the local energy infrastructure and advancing the offshore wind power utilization.

Each turbine in the wind power project contains hybrid switchgear PASS M00-Wind with high voltage of 72.5 kV and WindSTAR power transformers of 66 kV, both integral components of Hitachi Energy’s OceaniQ™ portfolio designed for offshore applications. These solutions have minimized losses, facilitated cost-effective operation, and extended transmission distances of the offshore wind farm.

The two OceaniQTM solutions are designed to seamlessly integrate into the limited space within a wind turbine, effectively addressing challenges prevalent in offshore environments. The compact nature of the equipment enables it to withstand sudden movements, strong vibrations, exposure to salt mists, and corrosion. Notably, WindSTAR transformers prioritize environmental sustainability and fire safety through the utilization of biodegradable ester fluids as insulation liquids.

Tata Power Delhi Distribution collaborated with ADP to optimize grid enhancements and energy storage in India

ADB and Tata Power Delhi Distribution Limited (TPDDL), the distribution division of Tata Power Co. Ltd., signed an agreement to subscribe to non-convertible debentures in April 2023. This collaboration improved power distribution in New Delhi by implementing grid enhancements. The secured financing through this collaboration has been utilized for the initiation of a new 66/11-kilovolt grid and enhancement & expansion of transformers, substations, feeder lines, and switching stations. The financing is expected to support the installation of smart meters and the replacement of outdated electrical equipment and meters.

To conclude, the global renewable energy transformer sector has gained popularity due to the growth in infrastructure and smart construction activities, the high consumption of electricity, and the increase in demand for clean energy. However, technological advancements and environmental concerns are expected to open new avenues for the sector in the upcoming years.              

To kickstart a new journey of your transformer business with informed business decisions and novel strategies, contact our experts today!

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