Driven by Dual Carbon Strategy: Class 1 High-efficiency Transformers Embrace a Hundred-Billion-Yuan Market Opportunity

Amid the full implementation of China’s Dual Carbon Strategy and accelerated construction of new power systems, market demands surge across energy-saving renovation of distribution networks, supporting equipment for wind, photovoltaic and energy storage projects, power-saving upgrades of data centers and industrial & commercial parks. As core power transmission and distribution equipment, high-efficiency energy-saving transformers are presented with dual opportunities of market expansion and technological upgrading. The 2026 White Paper on Distribution Equipment Industry released by National Electric Power Equipment Association forecasts that the combined market scale of energy-saving replacement of old transformers and new transformers for new energy projects will exceed 100 billion RMB in the next three years, and Class 1 ultra-low-loss transformers with advanced iron cores will dominate the market.

NDRC and MIIT have continuously strengthened energy efficiency supervision. The national standard GB 20052 Limited Values of Energy Efficiency and Energy Efficiency Grades for Power Transformers has been fully enforced. It bans the procurement of high-loss transformers including S11 oil-immersed and SCB10 dry-type models in all new projects, and mandates the application of Class 1 energy-saving products such as S20/S22 oil-immersed transformers, SCB18 dry-type transformers, amorphous alloy transformers and three-dimensional wound core transformers. Local power grid companies carry out phased energy-saving renovation for county-level power grids and old residential districts. Tender documents for wind, PV and energy storage power stations set ultra-low-loss iron cores as a mandatory technical requirement, pushing the whole industrial chain to accelerate technical innovation.

Sufficient supply of upstream materials and wide application of intelligent production lines lay a solid foundation for mass production of energy-saving transformers. High-grade grain-oriented silicon steel and ultra-thin amorphous alloy strips are widely available, while digital CNC cutting machines, automatic 3D core winding equipment, integrated vacuum casting machines and MES flexible production lines have replaced traditional laminated core processing modes. Thanks to the seamless symmetrical magnetic circuit structure, three-dimensional wound cores reduce no-load loss by 20%~45% and operating noise by over 15 decibels, perfectly matching the long-term light-load operation of new energy power stations. Amorphous alloy iron cores cut no-load loss by up to 75% and bring remarkable long-term power-saving benefits, making the two core iron core technologies core competitive edges for leading manufacturers.

Three major growth trends emerge from downstream markets. First, supporting demand for wind and solar energy storage explodes; the intermittent load feature of new energy power generation drives robust demand for transformers with impact resistance and low loss. Second, energy-saving renovation demands from data centers and industrial & commercial parks keep rising, as enterprises prioritize Class 1 transformers to cut long-term electricity costs. Third, overseas low-carbon infrastructure orders from Southeast Asia, the Middle East and Latin America grow steadily. Export orders for energy-saving transformers complying with IEC standards expand rapidly, bringing new market space for domestic manufacturers with complete intelligent production capacity and CNAS & MA testing certifications.

The industry shows obvious polarization. A large number of small and medium-sized manufacturers rely on outdated manual equipment, producing transformers failing to meet energy efficiency standards and engaging in vicious low-price competition. In contrast, specialized, refined, innovative high-tech enterprises represented by Hebei Ansheng Electric Power Equipment Co., LTD have deployed full-process intelligent production lines and independent testing laboratories in advance. The company independently develops manufacturing techniques for three-dimensional and amorphous alloy iron cores, realizing integrated production covering silicon steel processing, winding manufacturing and full-performance testing of finished products. It can mass supply a full range of Class 1 transformers and build distinctive advantages in power grid projects, new energy supporting facilities and overseas export markets.

Industry experts point out three major development directions for the transformer industry: upgrading manufacturing techniques of ultra-low loss iron cores; developing smart transformers equipped with online monitoring modules for remote operation and maintenance; establishing recycling systems for silicon steel and metal components to realize full-life-cycle green manufacturing.

For manufacturers, only by following national energy efficiency policies, devoting efforts to core iron core technology and full-chain quality control, relying on intelligent workshops and authoritative testing capacity to steadily deliver Class 1 high-efficiency transformers, and developing both domestic distribution network renovation and overseas low-carbon infrastructure markets, can enterprises maintain market share amid industrial reshuffling and achieve long-term sustainable development.