The publication of the new energy report by the State Grid Corporation of China in July 2024 revealed one key number that grabbed the utmost attention of procurement departments: the amount of energy generated by new energy sources in the region reached 1.2 trillion kWh in 2023, a volume sufficient to power almost any home in the country. If one needs transformers, switchgear, or storage devices, this number is worth considering in the procurement process because each terawatt hour of energy produced by both solar and wind energy means a step-up transformer manufactured, subjected to testing, and delivered.
This article deals with the implications of 1.2 trillion kWh, its position in the overall generation process of energy in China, the share of electricity production by wind and solar energy sources and significance of the utilization ratio for the mentioned amount of energy. Moreover, the article provides information as for future orders of the equipment needed, modification of its specifications, and pricing and delivery terms.
In the year 2023, the output from renewable energy sources (wind and solar) in the State Grid corridor reached a full 1.2 trillion kWh, representing 16.9% of the total. In general, the amount of energy used from wind was 886 TWh and that from sunlight was 584 TWh, totaling 1.43 trillion kWh as of today and accounting for 15.8% of the total energy consumption. The efficiency levels were quite good, with wind power plants showing 97.3% performance and solar power facilities 98%. After the amount of power that will need to be supplied with the help of design equipment has been calculated, it will become clear that for every new 1,000 kW of energy produced by renewable means, energy equipment orders will be made for several step-up transformers and possibly some LV and MV switchgears.
What the 1.2 Trillion kWh Figure Actually Covers
According to the State Grid Service New Energy Development Report 2024, the 1.2 trillion kWh achievement is based on the operation of the State Grid Corporation of China, covering around 26 provinces and nearly 88% of the power grid. In 2023, this area added 226 GW of wind and solar power capacity, bringing the total installation of renewable energy to around 870 GW or 37.7% of the total power in the region. The generation of renewable energy reached 1.2 trillion kWh, which is an increase of approximately 2.0% in the energy generation percentage.
On the national level, the numbers are bigger than that. The total generation from wind and solar energy in the Southern Power grid operating area was around 1.43 trillion kWh, according to the National Energy Administration. This is the highest figure published by the NEA and helps highlight how clean energy has made a move to the mainstream.
| Region / Scope | New Energy Generation 2023 | Share of Generation |
|---|---|---|
| State Grid operating area | 1.2 trillion kWh | 16.9% |
| National (all grids) | 1.43 trillion kWh | ~15.8% of electricity consumption |
| China residential consumption (comparison) | 1.35 trillion kWh | – |
The difference is important in terms of accurate information in procurement documentation; 1.2 trillion kWh refers to the relevant area of the State Grid while the phrase 1.43 trillion kWh corresponds to the national wind-plus-solar number. Both numbers exist and they convey the same message – the volume is so high that the equipment chain providing it is the largest consumer of power transformers among industries worldwide.
The National Picture: Wind and Solar by the Numbers
The National Energy Administration (NEA) has released the renewable energy monitoring report for China’s 2023. The report reveals some major key metrics of the industry at the end of this year. This includes total renewable installed capacity of 1,516 GW showing a rise of 25% and total renewable generation of 2.95 trillion kWh, which is equivalent to 31.8% of total generation. The various renewable energy sources contributed to this total include hydropower with 1.28 trillion kWh generated, wind power with 886 TWh, solar energy contributing 584 TWh and biomass energy generation of 198 TWh.
| Source | 2023 Generation | Share of Total Generation |
|---|---|---|
| All renewables | 2.95 trillion kWh | 31.8% |
| Wasserkraft | 1.28 trillion kWh | 13.8% |
| Wind | 886 TWh | 9.5% |
| Solar PV | 584 TWh | 6.3% |
| Biomass | 198 TWh | 2.1% |
The implications are striking. Firstly, the combined output of wind and solar energy plants now surpasses that of hydropower, the main source of clean energy in China for decades. Secondly, with a combined generation of 1.43 trillion kWh, their share of overall consumption is now around 15.8% as compared to the world average figure of 13%. Hence, in just under 10 years, China has changed from being behind global trends when it comes to clean energy to becoming one of the leaders.
Wind vs. Solar: Where the Output Comes From
The amount of power produced from wind energy increased by 16.2% to 886 TWh, compared to the increase of solar energy, which reached 36.7%, amounting to 584 TWh. Such rates of development result from the fact that constructing solar stations takes less time, is cheaper, and involves solar panels that can be placed on the roofs of buildings.
| Technologie | Installed (end-2023) | Growth | Generation 2023 | Growth |
|---|---|---|---|---|
| Wind | 441 GW | +20.7% | 886 TWh | +16.2% |
| Solar PV | 610 GW | +55.5% | 584 TWh | +36.7% |
The distribution of wind solar determines the selection of transformers to be specified. Wind farms including offshore ones generally require larger transformers for stepping up voltage, with common ratings of 30-400 MVA in the 35 kV/110 kV or 220 kV voltage classes and short-circuit resistance as well as protection against corrosion. On the contrary, distributed solar and large scale PV installations typically use pad or skid mounted units rated 1,000-2,500 kVA in the 10/0.4 kV or 35/0.69 kV voltage classes, where inverters are used to feed the LV side. Ultimately, it is the position of the buyer that helps a transformer specifier conclude what specifications are needed.
Utilization Rates: 97.3% and 98.0%
Raw figures might not paint the full picture, but utilization rates tell you if the grid is capable of absorbing what has been produced. In the year 2023, in China, the average wind utilization rate stood at 97.3% up by 0.5 points, while that of solar did a slight drop by 0.3 points, thus reaching 98.0%. Both of these measures are on a high level internationally, but a small decline in solar utilization indicates that solar generation capacity exceeds the grid’s ability to connect and transport it.
The above constraint has prompted a shift of conversation in terms of equipment in China to flexibility: battery storage systems, pumped storage (which has reached 51 GW in 2023), and dynamic transformer tap control. When a transformer operates for a solar farm in the area where there is no demand for midday solar generation, the transformer should have wider ranges of taps, operate with OLTC more frequently, and stay at acceptable loss values under partial loads, which means that it may be operating only at 20-40% of its capacity.
What 1.2 Trillion kWh Does to the Grid
It is not a coincidence that a total of 1.2 trillion kWh of variable generation has been integrated. The State Grid established or upgraded 19 AC and 16 DC UHV lines, operated 94 GW of pumped storage either operational or under development, and initiated the national “new energy cloud platform” in order to manage application of connections in the country. The outcome here is that a distribution and sub-transmission network is reconstructed on an unprecedented scale – it is the same 110 kV and lower grid network that attracted 55% of investments made by the grid in 2023.
In terms of the practical issues faced by the transformer industry, this means that renewable plants are connected through small-length feeders, which results in having very high fault current exposure for the transformers at the connection point. In addition, transformers installed at this point of connection are subjected to power surges due to switching operations, harmonic components arising from inverter work, and daily thermal changes which are not characteristic for conventional distribution transformers. Consequently, companies are now looking for renewable-duty transformers which feature increased capability for short-circuit withstand.
The Transformer and Switchgear Demand Engine
Every new gigawatt of produced energy from wind or solar sources would require around 2-3 transformers, depending on the size of the unit being installed plus certain units of LV switchgear and MV switchgear for protection of the collection system. Applying this rule of thumb to new wind and solar capacity added in 2023, which was 243 GW, shows that during one year alone 60,000-80,000 transformers would have to be purchased for the connections of renewable energy systems, over and above the regular replacement and upgrading program of the grid.
| Anwendung | Typische Nennleistung | Indicative Price (FOB China) | Vorlaufzeit |
|---|---|---|---|
| Distributed solar inverter transformer | 100-315 kVA | $2,500-$8,000 | 8-10 weeks |
| Utility PV / small wind step-up | 500-1,000 kVA | $9,000-$20,000 | 8-12 weeks |
| Renewable farm collection unit | 1,500-2,500 kVA | $20,000-$45,000 | 10-16 weeks |
| Offshore wind step-up | 30-100 MVA | $250,000-$1,500,000 | 6-12 months |
Cost depends on specifications, brand, and geographic area. Offshore models have high corrosion and testing costs. However, this trend has become clear: the renewable construction boom has taken most of the manufacturing capacity, and ordinary distribution transformers which were shipped within 4-6 weeks can now take up to 8-16 weeks.
2024 and Beyond: Where the Growth Is Heading
This pattern continued until 2024, where installed capacity in wind reached about 510 GW and the capacity in solar reached approximately 840GW. The utilization was around 95% by the end of 2024. Between January and July in 2024, the total wind and solar generation of 1,055 TWh was achieved in a mere seven months (approximately 20% of total generation) which was already higher than the total electricity consumption of the third sector in that period.
Consequently, the realistic demand forecast for new equipment does not suggest an increase in consumption, but rather stable sales of equipment. It is estimated that the amount will reach over 200 GW per year for both NEA and CEC during the 14-th Five-Year Plan (2021-2025) and 15-th period should be similar too. Thus, companies have to consider green transformers as a stable product line, not an occurrence.
How Buyers Should Respond to the Buildout
These are some practical steps if you plan to buy transformers either for renewables or to extend your network:
- Place your orders in advance and use standardized designs. Standard designs in the range of 1,000-2,500 kVA have the shortest lead time (from 8 to 16 weeks). If you use customized connectors, special impedance values, or non-standard voltage levels, the lead time may rise considerably while keeping the cost of the purchased transformers higher by about 10-25%.
- Ask for partial load specifications. According to the specifications, you should indicate no-load losses and load losses based on the actual load level of the transformer during operation (which may be 20-40% instead of 100%).
- Take into account bidirectional and harmonic operation. If you link the transformer with storage or high share of solar power, it will be necessary to include requirements concerning the equipment’s higher short-circuit strength and a wider OLTC range than that for a regular transformer.
- Lock in the costs of copper and steel. These materials constitute 40-60% of transformer price. You should ask suppliers to include price indexing in the contracts for the products.
- Ascertain certification of the transformers being supplied. Suppliers should provide you with IEC 60076 results and factory acceptance testing procedure before you learn about the bids made by other suppliers.
Manufacturers Serving the Renewable Buildout
The suppliers present on this landscape fit well into established categories. Well-known companies such as Siemens Energy, Hitachi Energy, and ABB lead the market of offshore wind turbines and high-voltage transformers thanks to their engineering capabilities and servicing systems that add value to their products. Schneider Electric is in charge of low/high-voltage transformers and digital control systems in the field of renewables. As for the Chinese companies TBEA, Baoding Tianwei, and China XD Group, they provide a lot of products on the domestic and international market at competitive prices.
| Hersteller | Positioning | Renewable-Relevant Products |
|---|---|---|
| Siemens Energie | Premium | Large power transformers, offshore platforms |
| Hitachi Energie | Premium | Grid interconnection, HVDC, large step-ups |
| ABB | Premium | Distribution step-ups, LV/MV switchgear |
| Schneider Electric | Mid-premium | LV switchgear, digital monitoring |
| TBEA / Baoding Tianwei / XD Group | Volume | Distribution to 1,000 kV class |
| Jiangsu Subian Electric Power | Competitive | IEC 60076-certified distribution and medium power transformers |
For buyers looking for equipment that has certification at competitive prices, without the years taken by the global tier engineering, Jiangsu Subian Electric Power represents the Chinese mid-segment. It has IEC 60076 certification and has been shipping the oil-immersed and dry distribution transformers to works of renewable energy and infrastructure projects in the different parts of Asia, Africa, the Middle East, and Latin America. The lead-time ranges from 8 to 16 weeks and includes test documentation as well.
Häufig gestellte Fragen
What does “1.2 trillion kWh” in the title refer to?
As for the new energy (wind and solar energy) output in the area of operation of the State Grid in 2023, it constitutes 16.9% of the total output in that area. In regard to the overall country’s output, the quantity of produced energy, which is a mix of wind and solar energy in 2023, amounted to 1.43 trillion kWh. The figures involved are exact: in the case of the former one, it comes from the State Grid report, whereas the latter figure is quoted from the National Energy Administration.
How much of China’s electricity now comes from wind and solar?
In 2023, the total amount of electricity consumed was 1.43 trillion kWh coming from wind and solar energy sources, which is about 15.8% of the total consumed. The share of wind generation was 9.5% and solar generation represented 6.3% of total electricity consumed. Utilization rates remained at a very high level with wind reaching 97.3% and solar 98% while solar curtailment raised slightly.
What transformers does a solar or wind farm need?
Usually, a single step-up transformer is utilized for every 1-10 Megawatts (MW) of capacity produced by inverter or turbine. Distributed solar technology makes use of low voltage (LV) transformers with capacity ranging between 100 and 315 kilovolt-amperes (kVA); utility solar PV systems and smaller wind systems requires transformers with capacity ranging between 500 kVA and 2,500 kVA, while large wind plants utilize collection transformers ranging between 30 MVA and 100 MVA for voltages of 35/110 kilovolt (kV) and 220 kV. Offshore turbines lead to additional costs related to their corrosion and testing and prolonged delivery times.
How has the renewable buildout affected transformer prices and lead times?
There is limited manufacturing capacity. The price of a 100 kVA distribution transformer now ranges from $2,500 to $5,000 FOB China, and for a 2,000 kVA renewable step-up unit, it ranges from $20,000-$45,000. Delivery timeline for standard designs now has extended to 8-16 weeks. Previously, delivery was 4-6 weeks before the ramp-up. Large power transformers to connect to the grid have an even longer delivery time ranging from 6-12 months.
What should I specify for a transformer feeding a solar plant?
Fortified short-circuit resistance, costs values calculated considering actual loads (usually 20-40% of the day), larger OLTC tap ranges where voltage will go with different flows, and proper harmonic content considering inverters. If, however, storage is connected, prepare bidirectional flow of power for spec.
Referenzen
- National Energy Administration (NEA) – Publisher of the 2023 National Renewable Energy Development Monitoring and Evaluation Report, source of the national wind-solar generation figures.
- China Electricity Council (CEC) – Source for installed capacity, generation mix, and grid investment statistics cited in this article.
- IEA Renewables 2023 – International analysis of the solar and wind buildout, including China’s share of global additions.
- IEA: China country profile – Context on China’s renewable targets and grid integration challenges.
- IEC 60076-1: Power transformers – General – The standard governing the type tests and performance guarantees of transformers feeding renewable plants.
- IEC 60296: Mineral insulating oils – Oil quality standard relevant to renewable-duty transformers operating under thermal cycling.
- Jiangsu Subian Electric Power – IEC 60076-certified manufacturer of distribution and medium power transformers for renewable and infrastructure projects.
Fazit
The recent report indicating that China’s new energy development achieved a total of 1.2 trillion kWh within the State Grid region and 1.43 trillion kWh overall in the country is not just a coincidence. It is the most evident message about the durable structural need for transformers and switchgear. Each gigawatt of solar and wind energy implies the presence of approved transformer technology. Also, over 200 GW added annually allows keeping the demand for transformers almost always high throughout the planning period.
The buyer’s plan lies on the data: making standard formulations, ordering in advance, requiring loss quantity in a partial working mode, and checking the IEC 60076 certification. If you need transformers of distribution or medium power for renewable energy applications, you can contact Jiangsu Subian Electric Power as it offers IEC 60076 certified products with the average lead time of 8-16 weeks.