Renewables

As countries in Europe and the United States accelerate the renovation of aging power grids and the integration of renewable energy, the box-type substation has become one of the fastest-growing equipment segments in the power infrastructure sector. Industry data shows that in the first quarter of 2026, orders for box-type substations in European and American markets surged by over 35% year-on-year, with photovoltaic transformers supporting solar power plants and dry-type transformers suited for urban low-carbon retrofitting emerging as the core growth categories. Industry analysts believe this trend will reshape the global medium- and low-voltage power equipment landscape over the next three years.

The current round of grid upgrades places higher demands on equipment miniaturization, environmental friendliness, and intelligence. Traditional oil-immersed transformers, with their high reliability and low cost, continue to dominate large-scale ground-mounted power plants and high-voltage scenarios. Meanwhile, in urban commercial areas, residential energy storage systems, and locations with stringent fire safety requirements, dry-type transformers are increasingly being included in the procurement catalogs of European and American utility companies due to their oil-free design, low losses, and ease of maintenance. At the same time, the large-scale grid connection of photovoltaic power plants has directly driven the customized demand for photovoltaic transformers in the step-up voltage process. This is especially evident as the U.S. Inflation Reduction Act and the EU’s “REPowerEU” plan continue to stimulate investment, creating local production capacity gaps that are attracting multiple Chinese suppliers to accelerate their overseas expansion.

It is worth noting that high-voltage transformers, as critical equipment in backbone grid nodes, are facing increasingly stringent energy efficiency standards and carbon footprint requirements. Recent eco-design regulations for transformers introduced by regulatory authorities in Europe and the United States are directly pushing companies to innovate toward low-carbon and recyclable material solutions. Against this backdrop, Chinese manufacturers and suppliers with scale and technological advantages are deeply participating in the reshaping of local supply chains in Europe and the United States through overseas facility setups and technology licensing. From box-type substations to core transformer components, the role of Chinese manufacturing in the global green power equipment market is shifting from "equipment exporter" to "system solution provider," injecting critical momentum into the next phase of energy infrastructure upgrades.