Even though, India is only behind China and the US when it comes to electricity generation, there is a power deficit concern that has been plaguing the country for well over a decade now. Transformers are an important facet of a nations’ power grid and owing to the increasing power demand, the
Indian transformer market is expected to grow at a CAGR of 5 percent between 2020 and 2025. Aside from the increasing demand for power, the expansions in the transmission and distribution systems can also be attributed as catalysts driving the growth of the
transformer market in India. With that said, delays happening in the implementation of various projects and lengthy official procedures are holding back the real potential of the transformer market in the country. Still, if changes are made to address these issues, the wide-scale transformation happening in the Indian power sector has the potential to offset these concerns.
Government Strategies Boosting the Transformer Market
In order to bridge the demand supply gap in the country, the government is coming up with new policies in order to increase electricity generation as well as to encourage the consumers to scale down their power consumption. Some of the most notable government schemes that are aimed at improving the power distribution infrastructure in both rural and urban areas include; the Deen Dayal Upadhyaya Gram Jyoti Yojana (DDUGJY), Integrated Power Development Scheme (IPDS), and National Electricity Fund (NEF). These projects are also expected to accelerate the growth of the Indian transformer market. As a measure to ensure the quality and standardize transformers manufactured in the country, the government has made it mandatory to bring these transformers under the Bureau of Indian Standards (BIS) Certification. And this has resulted in improved quality and better reliability of domestic transformers. Also, by making it mandatory to get BEE star labeling, the government is promoting the adoption of modern technology in the production of energy-efficient transformers. With the Indian transformers market aspiring to reach for greater heights, let’s analyze the major trends happening in the industry.
Increased focus on Renewable Energy in the Power Industry
Reducing carbon emissions and curbing the affects of global warming is one of the biggest challenges that we face now. With that said, the global power industry still uses 75 percent of non-renewable sources including coal, natural gas and oil. Owing to this, the power industry is seen as one of the biggest contributors to the increasing carbon emissions. As decarbonising of the power industry is the need of the hour, it is important to shift towards renewable power sources. And a Bloomberg report highlights this shift as it states that by 2050 half of the world’s energy will be derived from wind and solar power and by that time, coal is expected to amount for only 11 percent of global electricity generation. Acknowledging the importance of switching to sustainable sources of power, in 2019, the Ministry of New and Renewable Energy (MNRE) launched the Pradhan Mantri Kisan Urja Suraksha evem Utthan Mahabhiyan (PM KUSUM) for the farmers of the country.
And through this scheme, the government is aiming to promote the use of solar pumps as well as grid-connected solar and other renewable power plants. With a total budget of INR 34,422 crore, this program is viewed as a major catalyst that will increase electric access to rural parts of the country and expand the transmission and distribution system. And this is expected to drive India’s transformer market even more.
One of the most popular renewable energy transformers are the solar panel transformers also called as solar inverter transformer and it steps us DC voltage to the required AC voltage before supplying to the power grid. ABC Transformers, India is one of the leading players in this segment and they have got a wide array of transformers including distribution transformer, power transformer, and furnace transformer to name a few. Their Solar Inverter Transformer is one of the best in its class as this ISO 9001 – 2008, and BIS Certified company uses state of the art technologies during the transformer manufacturing process. ABC Transformers also follow robust quality testing procedures to ensure that their products are top of the line. By designing and developing these transformers in house, the company is able to ensure higher plant efficiency as well.
HVDC Convertor Transformers
Recently, the HVDC (High Voltage Direct Current) technology has garnered a lot of attention owing to its unique ability to transmit large amounts of electricity through long distances while still ensuring fewer losses. Through overhead transmission lines and submarine cables, HVDC technology can also be used where traditional AC connections cannot be used. This means that, it can also be used to interconnect separate power systems. Aside from that, HVDC transmission also offers controllability and lower costs when compared to AC solutions when it comes to long-range transmission. One of the pioneers in this space is Hitachi Energy who has their presence across the world including India. The company has been a front-runner when it comes to developing HVDC technologies that can cope up with the increasing economic and sustainable transmission demands. As of now, Hitachi Energy offers two HVDC transformers and they are HVDC Classic Converter Transformers and HVDC Light Converter Transformers.
Smart Transformers for Better Control
Smart Transformers or Digital Transformers are unique in the sense it can independently regulate the voltage. At the same time, it has the ability to maintain contact with the smart grid. One of the biggest perks of this feature is that it allows for real-time feedback and remote administration on the different parameters of the power supply. Through intelligent electronic devices, and smart monitoring and diagnostic technologies, these smart transformers not only ensure better control over power supply but it also improves the power production and reliability at a lower cost. Two of the biggest areas which can be improved through smart transformers are temperature and DGA (Dissolved Gas Analysis) monitoring. And owing to the increasing demand for smart transformers, this market segment is estimated to reach USD 5.04 billion by 2026. The increasing focus on producing alternate energy worldwide can also be attributed to the growth of the market.
CG Power and Industrial Solutions Limited, India is one of the leading global players in the smart transformer manufacturing market and they design and manufacture myriad of transformers, as well as, reactors. Owing to the quality and effectiveness of their transformers, the company has become one of the most preferred transformer and reactor manufacturers in the country. One of their unique products is the compact and reliable transformer with high overload capacity. And by leveraging the latest technologies and by constantly striving to better themselves, CG Power and Industrial Solutions Limited has become one the top 10 transformer manufacturers in the world.
Even though, the prices of raw materials including aluminum, and copper are highly volatile in the transformer market, the long-term outlook when it comes to the growth of the industry remains positive. Projects including the Green Energy Corridor and the transmission system for renewable energy zones continue to be key drivers of the market. Also, a major boost to the growth of the Indian transformers market is the India Investment Grid which is a Ministry of Commerce and Industry Platform. This has a pipeline of 75 T&D projects which has a total investment of INR 115 billion. And owing to all these, Indian transformers market is poised to reach for greater heights and push the boundaries of innovation in this segment.
