POWER September 2023 - 33

POWER TRANSFORMERS
TWh annually, which sheds light on the
magnitude of the impact of potential improvements
in transformer efficiency. In
the EU, the Ecodesign Directive Tier 2
regulation became effective in July 2021,
replacing the Tier 1 regulation. The Tier 2
regulation aims to reduce energy waste
by 10%, compared to Tier 1 (2015) levels.
The U.S. Department of Energy (DOE)
has proposed new energy efficiency
standards for different categories of distribution
transformers, aiming to improve
the resilience of America's power grid,
reduce utility bills, and drastically curtail
domestic carbon dioxide emissions.
Nearly all the transformers manufactured
under the proposed standard would be
built with amorphous steel cores that
are highly energy efficient as compared
to the traditional grain oriented electrical
steel. The new rule, if adopted within the
proposed timeline of DOE, is expected
to come into effect in 2027.
Investment in Grid Infrastructure.
According to the IEA, in 2021, global investment
in electricity grids accounted
to $309 billion, which is a significant
6% year-on-year increase. These investments
were mainly driven by advanced
economies,
which
accelerated
their
efforts for electrification of buildings,
industry, and transportation, and to accommodate
intermittent renewables.
Furthermore, the IEA believes that in order
to achieve net-zero emissions these
investments need to average about $600
billion per year through 2030.
In Europe, one third of the grid infrastructure
is 40 years old, which can't be
overhauled overnight, so the grid equipment
is being supported with the help
of digital technology. The digital technology
is preparing the grid infrastructure
for integration with the intermittent
renewable energy sources followed by
an increase in demand due to EVs, heat
pumps, and other sectors. It is expected
that about $600 billion will be invested
in the European grid infrastructure from
2020 to 2030, out of which $200 billion
will be spent on the digitalization of the
grid infrastructure.
New Technology Trends in the
Transformer Market to Support the
Energy Transition
A range of latest technological solutions
including internet of things (IoT), digital
twin, and smart meter technologies
have emerged in recent years, which are
now commercially available in the global
market. These technological solutions,
when used with transformers, assist
September 2023 | POWER
2. Investment in electricity grids globally from 2015 to 2021. Courtesy: PTR Inc.
utilities in their transition from fossil fuel
to clean energy sources. IoT sensors,
for instance, can be installed on power
transformers in order to collect real-time
information on temperature, vibration,
and oil level. The data can assist utilities
in proactive maintenance planning,
which in turn reduces operations and
maintenance costs over the lifespan of
grid equipment.
Digital twin solutions for transformers,
on the other hand, are a somewhat
nascent technology. Yet, when used
with transformers, a digital twin can
simulate several operating scenarios.
These simulations enable utilities to
optimize the performance of transformers.
Furthermore, smart meters also
collect data on energy consumption
and demand, and when paired with a
distribution transformer helps the utility
to divide the distribution region into
geographically smaller chunks that are
more manageable.
OEMs Enhancing Portfolio of Digital
Transformers
Leading transformer original equipment
manufacturers (OEMs) are employing
digital technology with their products
and solutions in order to meet the requirement
for improved reliability and real-time
data for asset health monitoring
and management. It is expected that the
electricity grid equipment in the future,
especially transformers, will be equipped
with several sensors that enable realtime
monitoring.
Hitachi Energy, for example, has introduced
the next generation TXpert solution
for the digitalization of transformers
recently. The technology enables transformers
to collect relevant data, which in
turn assists in reducing cost, optimizing
www.powermag.com
operation, extending lifespan, and improving
performance of the equipment.
Siemens Energy, on the other hand, offers
Sensformer, which also enables digitalization
of the transformer, leading to
reduced downtimes, flexible transformer
operation, improved environmental protection,
and reduced costs.
Looking Forward
PTR Inc. believes that the energy transition
is inevitable, which will radically
alter the way legacy grid equipment is
designed including power and distribution
transformers. The global transformer
market in the future is expected to
be mainly driven by smart transformers,
which is why OEMs are consistently
experimenting and innovating with new
products and solutions in order to align
with the changing grid needs.
Furthermore, PTR Inc. expects that in
the future economies across the globe,
other than the advanced economies,
will also come up with stricter energy
efficiency standards regarding legacy
grid equipment including transformers
(distribution and power transformers).
Investment in electricity grid infrastructure,
including transformers, is crucial in
achieving net neutrality as stipulated in
the Paris Agreement. Over the last few
years global investment in the electricity
grid infrastructure is averaging about
$300 billion per year, which needs to
be raised to about $600 billion per year
through 2030 in order to achieve longterm
climate goals. ■
-Shaista Naz is a power grid analyst at
PTR Inc. (sale@ptr.inc). She is currently
working on the power and distribution
transformers market where she is responsible
for analyzing the latest market trends
and innovations in different regions.
33
http://www.powermag.com
POWER September 2023

Table of Contents for the Digital Edition of POWER September 2023
