Morning Market Report

I. Headline News

China Electric Equipment Successfully Develops Specialized Transformers for Offshore Wind Turbine Nacelle

Shandong Electric Electric Intelligent Electric Company launched two offshore wind power special transformers (SRSP-20000/69 oil-immersed, SCFLB-F(H)-13860/69 dry-type), with high impact resistance, corrosion resistance and low-loss characteristics, the technology reaches the international leading level 8.

II. Policies and Bidding Dynamics

South China Power Grid 2024 Distribution Network Equipment Second Batch Framework Bidding Starts

Covering 10kV oil-immersed transformers, amorphous alloy transformers, dry-type transformers and other core equipment, suppliers are required to respond to the adjustment of national industry standards, some of the old model agreement can be terminated early 1.

The Ministry of Industry and Information Technology (MIIT) issued a revised specification for the photovoltaic (PV) manufacturing industry

Clearly guide PV enterprises to reduce simple expansion projects, requiring the efficiency of transformer-containing PV inverters to be no less than 96.5%, and promoting the industry chain to intensification and intelligent development1.

III. Market and Industry Trends

TBEA's performance decline, the PV industry winter continues

Dragged down by the plummeting polysilicon prices and coal business, TBEA's polysilicon segment suffered serious losses in 2024, but the power transmission and transformation business grew against the trend; LONGI, TONGWEI and other photovoltaic leaders for the first time, more than 7 billion yuan in losses2.

China's transformer exports for three consecutive years of high growth

The export volume reached 1.4 billion units in the first half of 2024, an increase of 4.3% year-on-year; the export value of 37.3 billion yuan in 2023, a growth rate of 26%, mainly benefiting from the demand for renewal of the old power grid in Europe and the United States4.

IV, technology and product progress

Amorphous alloy transformer to accelerate the replacement of traditional products

Dry-type amorphous transformer due to fire prevention, energy saving advantages, in data centers, city grids and other areas of penetration, material cost reduction to promote industry scale application4.

UL certification 80kVA transformers become the new favorite export

Shanghai Yingshidan Electrical Group products through UL5085-2 certification, suitable for North America 480V power grid, low cost and high reliability to seize the small and medium-sized industrial equipment market in Europe and the United States7.

V. Enterprise Dynamics

Hengdian Dongmagnet Increases Supporting Products in Cloud Computing/AI Field

Focusing on data center UPS power supply, inductor and transformer R&D, expanding the incremental market of cloud computing and AI industry5.

Puluo Kairui Solar Layout 5GW Ultra-High Efficiency N-Type Cell Line

The new production line integrates LPCVD, printing machine and other equipments, and the demand for supporting transformers will grow with the installed capacity of photovoltaic1.

VI. International Perspective

The world's largest offshore PV project connected to the grid

TE Connectivity's Rikan RSTF connector is applied to 72.5kV transformer outer cone connection, promoting the standardization of offshore PV transformer technology1.

VII. Data Snapshot

China's transformer output is expected to reach 2.163 billion kVA in 2024, a year-on-year increase of 4.3%; the proportion of dry-type transformers increased to 35%, mainly benefiting from energy-saving policies and power grid renovation.