Circular transformers for secure grid supply chains
Nathália Pimentel
Ghazi Kablouti
Lara Mertens
Event by: Renewables Grid Initiative and Hitachi Energy
Event format
Virtual
Event duration
1 hour 30 minutes
Language
English
Transformers are a key component for the development of the needed electricity grid infrastructure to reach decarbonisation goals. Yet, their production requires significant resources, including materials like copper, steel, aluminium, and mineral oil. This can introduce potential vulnerabilities in grid supply chains, considering the concentration of critical raw materials in specific countries and the rising demand for critical raw materials globally across sectors.
According to the International Energy Agency (IEA), rising global demand for transmission capacity is creating challenges for grid supply chains, with delays in projects. IEA’s analysis also notes that surges in raw material prices are a contributing factor to cost increases in transmission components since 2021.
From an environmental perspective, raw material production accounts for 60% of global climate change impacts, including emissions and land use, according to the UNEP’s International Resource Panel (2024). At the same time, the EU’s share of global raw material production had not exceeded 7% in 2024 according to the Joint Research Centre (JRC).
Although these challenges underscore Europe’s vulnerabilities when it comes to clean technology supply chains, there are solutions that can help address them. In particular, embedding circular approaches in grid development can support reducing resource demand throughout grid life cycles. By integrating such measures, grid supply chains can reduce environmental and social impacts, while also becoming more resilient.
To explore practical examples already being implemented on the ground, RGI's upcoming webinar on 22 September will dive into Hitachi Energy’s initiative to incorporate circular measures for transformer supply chains.