Recent Hotspots in Global Medium and High Voltage Transformers (2025-2026)

1. Upgrade of Energy Efficiency Standards and Green Transformation: New Energy Adaptation as the Core​

Globally, the requirements for energy efficiency of medium and High Voltage Transformers are accelerating, and the lack of energy efficiency standards on the new energy generation side​ has become a key pain point in recent years. In April 2024, China issued the new version of Minimum Allowable Values of Energy Efficiency and Energy Efficiency Grades for Power Transformers(GB20052-2024), which was officially implemented in February 2025. For the first time, this standard incorporates 6kV-66kV transformers for new energy generation (photovoltaic, wind power, energy storage)​ into mandatory energy efficiency regulations, covering mainstream voltage scenarios for new energy grid connection (e.g., 35kV oil-immersed/dry-type transformers account for over 95% of applications in the new energy sector).

The core goal of the standard upgrade is to reduce transmission losses from new energy. Taking 35kV oil-immersed generation-side transformers as an example, the no-load loss of Grade 3 energy efficiency under the new standard has decreased by 30% compared to the old version (GB6451-2015), and Grade 1 energy efficiency has decreased by another 10%; the no-load loss of 35kV dry-type transformers (Grade 3) has decreased by 20% compared to the industry standard (NB/T31062-2014). According to estimates, if all new energy transformers in China are upgraded from S11 grade to S20 grade, carbon emissions can be reduced by 55 million tons, equivalent to 2.8 times the power generation of Gezhouba Hydropower Station in 2021.

This standard implementation not only promotes the transformation of China's transformer industry toward high efficiency and low carbon​ but also provides an important energy efficiency reference framework for global new energy grid connection.

1. Smart Grid and AI Demand-Driven: Solid-State Transformers (SSTs) Become the Next-Generation Core​

With the explosion of AI computing power (e.g., training ChatGPT large models consumes as much electricity in three days as 3,000 Tesla vehicles driving 320,000 kilometers) and the acceleration of smart grid construction, traditional transformers can no longer meet the demands of high power density and dynamic regulation. Solid-state transformers (SSTs), with their advantages of small size, high efficiency, and support for bidirectional power flow, have become a recent focus of technological research and market attention.

SSTs use high-frequency power electronic conversion technology. Compared to traditional industrial-frequency transformers, they reduce volume by 50%-80% and weight by 60%-80%, and can achieve millisecond-level dynamic voltage regulation and constant voltage output, making them particularly suitable for scenarios such as AI data centers, new energy grid connection, and ultra-fast charging stations. For example, NVIDIA's latest white paper lists SSTs as the preferred solution for medium-voltage direct supply in data centers, and companies like Jinpan Technology have completed SST prototype development and sent samples to NVIDIA.

Although SSTs are still in the prototype/small-batch verification stage​ (expected to be commercialized on a large scale from 2028 to 2030), market expectations are high—Guangda Securities' research report points out that SSTs are expected to become a breakthrough in power bottlenecks driven by the dual wheels of "AI + new energy," with the market size growing from 6 billion yuan in 2024 to 26.4 billion yuan in 2027 (CAGR of about 64%).

1. Global Supply Shortage and Chinese Advantages: Full-Industry-Chain Independent Controllability Becomes the Core Competitiveness​

Globally, medium and high voltage transformers are facing severe supply shortages: the supply gap for power transformers in the United States has surged by 116% compared to 2019, Europe's grid upgrades are progressing slowly due to transformer shortages, and large solar projects in India are idle while waiting for transformers. Against this backdrop, China, with 60% of global production capacity, has become the biggest beneficiary.

China's core advantages in transformers lie in full-industry-chain independent controllability:

Core Materials: Oriented silicon steel (the "heart" material of transformers) production reached 3.0325 million tons (2024), five times that of Japan and eight times that of the United States. Baosteel Group has built the world's only 0.18mm ultra-thin silicon steel sheet production line, with performance topping the globe;

Technology and Capacity: China Electrical Equipment Group has integrated enterprises like XD, Baobian, and Shandong Electrical Engineering to form a full range of "UHV + new energy" capacities. Private enterprises like Xinjiang Tebian and Jiangsu Huapeng lead the world in new energy transformer exports;

Delivery Efficiency: China's transformer delivery cycle (e.g., 10 months for large UHV transformers) is much shorter than that of Europe and the United States (over 18 months), and costs are lower (products of the same specification are half the price of European and American ones).

From January to August 2025, China's transformer export value reached 29.711 billion yuan, a year-on-year increase of 36.3%, with the European market surging by 138%. Some customers are willing to pay a 20% premium to ensure supply.

1. Technological Breakthroughs and Industrial Upgrading: UHV and Offshore Wind Power as Key Areas​

Recently, Chinese enterprises have achieved major technological breakthroughs in UHV and offshore wind power​ and other high-end medium and high voltage transformer fields, promoting industrial upgrading:

UHV Transformers: Shenbian Company's ±800kV UHV DC converter transformer applied to the Jinshang-Hubei UHV project improves network-side insulation levels by 5%; Xidian Xibian's 1000kV UHV generator transformer ensures the on-time operation of million-kilowatt coal-fired power projects;

Offshore Wind Power Transformers: Shenbian Company launched the world's first 20Hz offshore wind power low-frequency nacelle transformer, adapted to flexible low-frequency grids, reducing transmission losses by 15%-20%, and applied to the Huaene Yuhuan Phase II offshore wind farm;

Smart Transformers: Shandong Electrical Engineering Equipment Company developed a 220kV miniaturized three-winding transformer, which reduces steel usage through structural optimization (e.g., tank plate reinforcement structure) and improves assembly efficiency by 35%, with energy efficiency levels exceeding national standards.

1. Circular Economy and Remanufacturing: A New Path for Green Transformation​

With the advancement of the "dual carbon" strategy, transformer remanufacturing​ has become a new hotspot in the industry. TBEA (Hunan) Energy Construction Co., Ltd. uses "digital nerve" implantation (intelligent sensing chips) and "organ regeneration" (coil insulation renewal, insulating oil deep dialysis) to transform decommissioned 220kV transformers into equipment with energy efficiency superior to national Grade 1 standards. The cost is only 60% of new products, and a single remanufactured unit can save 70% of purchase costs and recover valuable construction time.

This model not only reduces the cost of grid upgrades but also minimizes resource waste—according to estimates, the carbon emission reduction from a remanufacturing center is equivalent to planting thousands of acres of forests, aligning with the development direction of a "circular economy."