Innovations to transform distribution transformers market

With the advent of changing consumer pattern, increasing power demand and consumption and adoption of newer technologies, industry foresee an upward trend in the future of distribution transformers market.

India’s power and distribution transformers market are anticipated to expand by more than 6.89 percent by 2026, owing to the growing demand for power due to rapid increase in population, industrialisation, and urbanisation.

India being the 5th largest power producer in the world, in terms of installed capacity, is calling for an increase in the market of power and distribution transformer market. According to the Ministry of Power, the total installed capacity of the country was 375.323 GW by the end of 2020.

The transformer industry has evolved considerably in recent times to meet theemerging requirements. With the changing paradigm, companies are more focusing towards new designs and features which help in lowering the costs and improving the asset life. The new framework of modernisation in transformer also includes improvement in core material without hampering the safety level. The penetration of digital technology is also another step undertaken to meet the emerging requirements of utilities and adapt to the changing grid.

Opportunities in distribution transformer market
Consumption of power and electricity is one of the basic yet significant indicators in deciding the development factors. With a population of 1.3 billion, India is the second most populous country in the world and the third-largest economy. The aim to provide each household access to electricity, round the clock through ‘Power for All’ programme is a major step in this direction. With a growth target of more than 9 percent, India is on a growth trajectory. India’s sustained economic growth is placing an enormous demand on its energy resources, energy systems and infrastructure which will help in keeping the momentum going.

“Experts believe we can reach 5 trillion by 2024-25. Increase in generation capacity of both conventional and non-renewable sources due to increase in per capita consumption of electricity and new avenues like electric vehicle charging stations etc. will also become one of the major growth drivers for the transformer industry”, says Atul Agarwal, Director, Uttal Bharat Electricals Pvt. Ltd.

Subhash Sethi, Power Consultant, explains, “The power sector today has about 382.15 GW of installed generating capacity comprising various sources of energy such as coal, gas hydro, nuclear and renewable. The installed capacity is almost double that of the current demand.” Demand comes from the industrial, commercial and residential consumers, from which the industry contributes to the demand increase on a consistent basis while domestic demand varies in different regions. As energy cannot be stored, power is generated according to demand. Increase in demand depends on the economic growth in the country. The elasticity factor, which is the relation between the GDP growth and electricity growth, varies between 0.9 and 1.1 as sometimes the demand is higher and vice versa. “All the generating stations have full evacuation capacity of transmission lines in the country. So, if the installed capacity is about 382.15 GW, the system including the transformation capacity is much more than this”, Sethi adds.

Innovations in distribution transformers
There has been a considerable improvement in the quality and types of raw material being used, along with changes in the process which are leading to minimising losses and expediting the production process.

Here, Atul highlights some of the innovation that are trending in the distribution transformers sector, including the energy efficient transformers, smart transformers, 3d core transformers, dry type transformers, slim transformers, skid type transformers, ester oil transformers, amorphous core transformers, bigger rating transformers up to 10mva in aluminium winding etc. “A smart design mix of permutations and combinations of the above shall be required to enhance the efficiency of the distribution transformers while maintaining the quality and cost trade intact”, Agarwal explains.

We also have Laser scribing technology, which was introduced about 25 years ago. The purpose of this technology is reducing the edgy current component of the core loses. Through laser scribing, small domains were created on the core laminations. In this way, the resistance to eddy current was increased and thus the I2R losses were reduced.

Adding to Aggarwal’s discussion, Sethi says “India already has smart electricity and distribution system with the help of digital systems like SCADA among the others, which is being used for appropriate communication within devices; moreover, data recording and data analysis is already happening.” The electrical system is controlled by microprocessors and works on digital platforms and computerised systems. However, new developments will keep flourishing the sector. So, organisations need to update their systems regularly to meet the requirements.

Sethi further adds, “This has two aspects. One is the national grid which is already fully computerised and automated. The second aspect is the distribution part which is based on static meters. Billing all over the country happens through computerised systems. So, it gets automatically updated into the system. Good DISCOMs have already automated their operations, but state DISCOMs need to come to that level. The technology already exists; it only needs to be adopted by them.”

Boosting industrial growth post pandemic
Covid -19 has affected both domestic and international economies very badly. Due to lockdown, industries of all sizes are affected. Amongst them, MSME’s are the ones who are badly hit. In India, most of the power and distribution industries come under medium and small enterprise and the pandemic impact is huge on them. The sector was already reeling under tremendous financial crisis before COVID and now companies are battling with challenges such as working capital issues, demand stagnation along with limited financial capacity etc. Exodus of migrant workers returning to their native places added fuel to the situation. This movement led to dearth of skilled labours in the factory.

Noting the same, Agarwal points “The recent announcements of financial packages by the finance ministry is a well thought out plan for stimulating the economy. With plans in releasing the overdue payments and returning of bank guarantees fully / partially is seen as good step towards revival.”

Boost in exports continue to be one of the major revival strategies for the country. All reforms should be carried with a specific time bound and effective manner. The move like governments take on introducing liquidity to the economy must significantly help in improving India’s competitiveness with wide ranging implications for each sector, including our industry.

Final note
Transmission lines are usually designed for a load that is estimated for the next 20-25 years. Planning and commissioning of new generating stations depends on demand, and transmission lines are accordingly commissioned. So, the capacity of the transmission system is adequate for the existing capacity. With respect to distribution, around 95 percent of DISCOMs in India are owned by state governments, and there are very few private company players in the country. Only Delhi, Surat, Mumbai, and Kolkata are privatised. Delhi has a joint venture between the private sector and the government, with the private sector holding a 51 percent stake and the government holding 49
percent.

Energy is a critical enabler of prosperity and economic growth, and the stability of global energy markets is essential to sustain and nurture modern industry and society. The demand for power in India will further foster due to increase in capacity utilisation, industrialisation, urbanisation and population. 5-Year Plan has caused some hiccups in the regular demand.

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”All the generating stations have full evacuation capacity of transmission lines in the country.” – Subhash Sethi, Power Consultant

‘‘A smart design mix of permutations and combinations is required to enhance the efficiency of the distribution transformers.” – Atul Agarwal, Director, Uttal Bharat Electricals Pvt. Ltd.