Advancing the Energy Transition

As the world moves decisively towards a cleaner, more resilient energy future, the role of renewable and distributed energy systems has never been more critical. Solar, wind, and other renewables are leading the charge in decarbonizing our energy landscape; however, their integration into the grid comes with complex challenges.

Transformers: The Backbone of the Renewable Energy Revolution 

The global push for renewable energy and distancing from carbon-based energy generation has forced the electrical grid, and those who support it, into an incredible transformation.  At the core of this transformation is a key component that has often been overlooked and taken for granted, TRANSFORMERS.  Power transformers are the backbone and silent enabler of the energy transition, and a critical component in the energy distribution network. Whether at the generation, transmission, or distribution level, transformers play an indispensable role and are responsible for converting and conditioning power into a usable format for industrial, commercial, and residential consumers.

The transformer’s primary role is to step up (increase) or step down (decrease) voltage levels to ensure efficient power transmission over long distances and safe delivery to end-users. With increasing renewable penetration, its importance has only grown and plays a more pivotal role in stabilizing the grid. Unlike traditional fossil-fuel-based power generation, which delivers steady and predictable power, renewable energy sources often generate electricity at variable voltages and frequencies, which can cause instability. Transformers help stabilize these variations and intermittency by converting the generated power into a consistent and usable form. For instance, a wind turbine might generate electricity at a lower voltage, which needs to be stepped up for transmission across the grid. Conversely, the voltage needs to be stepped down when it reaches residential or commercial areas for safe usage.

As distributed energy resources (DERs) such as rooftop solar, microgrids, and electric vehicle (EV) charging stations become more widespread, transformers are adapting to bidirectional power flows.

The Rising Demand and The Impact of Lead Times 

As governments create decarbonization goals, which ultimately cascade down to utilities and developers, the industry is racing to meet these goals. This activity is resulting in a surge in demand for transformers across the grid. 

Due to this surge, small power transformers are being used at a greater rate than ever before, especially among renewable generation facilities, and often in a more distributed pattern than traditionally seen at large power plants.  Small power transformers continue to be deployed across transmission networks, with pad mount and dry-type transformers supporting the distribution infrastructure.  The increasing reliance on transformers underscores their critical role in ensuring power reliability and quality in a rapidly evolving grid.

With rising demand comes a new set of challenges. The influx of inverter-based resources such as solar PV and wind power is straining the grid’s ability to maintain stable frequency and voltage. Additionally, transformer manufacturing lead times have reached unprecedented lengths, forcing utilities and developers to prioritize procurement based on availability rather than price and strict adherence to traditional specifications.

As lead times and demand both increase, manufacturers are making significant capital investments across the industry to build more manufacturing plants in an effort to meet this demand, and even more so, in automating and digitalizing the production of their facilities all over the world.  This is the case of JST Power Equipment’s transformer facilities inclusive of both liquid-filled or dry-type configurations. JST produces liquid transformers up to 100 MVA and 171 kV, and dry type transformers up to 50MVA and 69kV for North American markets (and even up to 65 MVA and 120 kV in Asian markets), and they have the reputation of being one of the fastest production lead times in the industry.

Additionally, their existing facility upgrades, building expansions, new facility development and business partnerships are just part of the efforts that OEMs take to keep up and respond to market demand. But that is only part of the story. The industry is responding to lead time constraints with differing purchasing strategies than in the past, such as:

• Prioritizing lead time over price: Gone are the days when utilities could make cost-driven transformer decisions.
• Stockpiling transformers: Large invertor-owned utilities are dependent on their supply of small power transformers and are now purchasing transformers in anticipation of future need and placing units in storage, compounding the lead time issues facing the market.
• Relaxing specifications: Customers are additionally making trade-offs on design flexibility to expand their supply chain options.  

Flow Down Effects of Demand 

As the overall need for reliable power increases throughout the world, so does the demand of equipment on the overall power industry.  The increases in these power demands are influenced by the changes to modern life.  Consider data centers which have become ubiquitous with our day-to-day activities, electric vehicles and the increase in power demand through residential and commercial charging, and proliferation of non-carbon appliances such as electric ranges and electric heat pumps.  While the changes in the industry are affecting transformers, the issues affecting the market are having a profound effect on the supply of switchgear, circuit breakers, and GIS supply in nearly equal magnitude and across the transmission, generation, and distribution spaces. 

Not only are switching stations needed for consistent power supply, but also to support new distribution schemes. Each station requires additional transformers to allow for the breakdown of power to useable voltages, and a vast amount of switchgear is needed for transformer protection. 

Transformer protection traditionally consisted of a circuit switcher or similar device which offered no real asset protection from the grid.  The current strategy for utilities is to make the additional capital expenditure for switchgear to protect expensive assets with long lead times.   The industry is seeing an increase in transformer manufacturing, and in turn, there is also a significant increase in switchgear manufacturing.  Companies like JST Power are expanding their switchgear manufacturing capabilities to allow for the supply of critical switchgear and GIS components, in the 72kVand below ranges, to support the distribution needs of the market.  The proliferation of Battery Energy Storage System (BESS) sites compounds the transformer demand and adds the need for protective switchgear at each site.  This protection flows both ways–protecting the assets in the station that make up a BESS site and protecting the grid as well. 

Power Quality Challenges in a Renewable Heavy Grid 

Utilities must shoulder the responsibility of providing clean, consistent power to their customers, all while protecting the grid.  The power grid, which has evolved for over 100 years, was built on the dependent on large, rotating power plants in specific locations–not the distributed energy resources (DERs) we see today.  As the proliferation of DERs increase, we will continue to see the growth and application of Distributed Energy Resource Management Systems (DERMS), with BESS and Flexible AC Transmission Systems (FACTS).

BESS systems bring another element into the arsenal of grid stabilization technologies.  The initial goal of leveraging BESS with renewable energy generation was for energy storage, but other advantages have emerged over time.  With the ability to provide real power stored in batteries generated by renewable loads, BESS systems offer some of the advantages of traditional grid forming power generation but also offer a key ability to perform reactive power compensation by operating at appropriate power factor requirements and manipulating the capacitive and indicative sides of their inverters.  Inherent in these BESS systems is the need for a significant number of transformers applied at each site.

Battery Energy Storage Systems: The Game-Changer 

The Achilles’ heel of renewable energy has always been its variability. The sun doesn’t always shine, and the wind doesn’t always blow. Enter Battery Energy Storage—the game changer and key to renewable energy reliability.

Battery energy storage systems (BESS) store excess renewable energy when supply generated during peak production times exceeds demand and dispatching it when needed during periods of low production or high demand. For instance, during a cloudy day or a windless night, stored energy can be dispatched to meet the demand, preventing blackouts and reducing reliance on fossil-fuel-based power plants. This capability not only smooths out fluctuations in generation but also enhances grid stability, defers costly infrastructure upgrades, and provides backup power during outages.

Utility-scale BESS installations are increasing worldwide. They enable better integration of renewable energy into the grid by providing ancillary services such as frequency regulation, voltage support, and demand response. They can quickly respond to fluctuations in demand and supply, maintaining the grid’s stability and efficiency, and preventing overloads.

Recently, JST introduced a new line of battery energy storage system (BESS) solutions, engineered and custom-built to meet the needs of customers across global markets and for various industry applications.

The modular design features PCS units with robust stand-alone performance capabilities with simplified integration and control of battery energy storage systems, which provides notable technical advantages in peak load management and frequency regulation.

Switchgear: The Guardian of Grid Safety and Efficiency

While transformers and BESS often steal the spotlight, switchgear is equally important in securing and stabilizing renewable energy. Switchgear is essentially the control centers of the electrical grid. They control, protect, and isolate electrical equipment, ensuring the safe and reliable operation of the power system.

In renewable energy systems, switchgear plays a crucial role in managing the connection and disconnection of energy sources. They protect the grid from faults, such as short circuits and overloads, which the variable nature of renewable energy generation can cause. By quickly isolating faulty sections, switchgears prevent widespread outages and damage to equipment.

As the complexity of power networks increases, Air-Insulated Switchgear (AIS) remains indispensable in protecting electrical equipment and ensuring reliable power distribution. As the energy landscape becomes more decentralized with the proliferation of microgrids and distributed energy resources, advanced switchgears are needed to manage these complex systems. They facilitate the seamless integration of various energy sources, ensuring optimal performance and reliability. Modern switchgear solutions, including gas-insulated switchgear (GIS), and hybrid variants, are evolving to meet the demands of high-voltage renewable integration, microgrids, and smart grids.

The Future: A Synergistic Energy Ecosystem 

The energy landscape is undergoing a seismic shift, driven by the urgency to combat climate change, the rapid depletion of fossil fuels, and the evolving needs of modern societies. As we pivot towards a more sustainable future, renewable energy sources like solar, wind, and hydropower are taking center stage. However, the journey to a fully renewable energy ecosystem is not just about generating clean energy, it’s also about establishing efficient energy distribution and storage. This is where transformers, battery energy storage systems (BESS), and switchgears come into play as unsung heroes.

For utilities, policymakers, and businesses alike, investing in these critical components is not just a necessity—it’s a strategic imperative. By modernizing transformers, deploying scalable BESS solutions, and upgrading switchgear, we can create an energy landscape that is cleaner, more reliable, and future ready.

However, rising demand and extended lead times are creating new challenges for utilities and developers. Addressing these challenges requires a strategic approach to procurement, a deeper integration of power quality compensation solutions, and continued innovation in transformer technology.

Since the future of energy relies on a stable and resilient grid, transformers will continue to play a pivotal role in making that future a reality.  This reality means it will be imperative to have agile manufacturers, such as JST Power Equipment, who are able to produce great quality at favorable production lead-times and adapt to the immediate need of the industry at incredible speeds.