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India: India’s ambitious solar expansion is currently facing significant challenges due to a severe shortage of transformers, as reported in a study by Mercom India Research. The shortage has been exacerbated by increased demand from various infrastructure projects, including railways, metro systems, and transmission projects, alongside the rapid growth of solar installations. power transformer
Lead times for procuring 220 kV transformers have increased from 8-9 months to 14 months. The delay is attributed to supply chain disruptions, a spike in copper prices, and a surge in global demand. With approximately 143 GW of large-scale solar projects under development and another 96 GW pending auction, the demand for transformers in India is growing, but the manufacturing capacity has not been able to keep pace, leading to longer lead times and higher prices. As a result, the deployment of solar projects is being slowed down, threatening India’s renewable energy targets.
Several factors contribute to the shortage. Firstly, the global supply chain issues, such as raw material shortages and copper price volatility, have significantly impacted production. Secondly, the Indian supply chain is increasingly being used for international projects, straining domestic availability. Lastly, the manufacturing process of transformers is complex and time-consuming, often taking longer than other components like inverters and mounting structures.
To mitigate this, some Indian transformer manufacturers are expanding production capacities and reducing cycle times. Some are investing in new manufacturing units and streamlining production processes to meet the growing demand. However, it will take time for these measures to fully address the supply bottlenecks.
Ensuring a steady supply of transformers is critical for India to meet its goal of installing 450 GW of renewable energy by FY 2031-32. Strategic investments and policy interventions are necessary to support the manufacturing sector and secure the necessary infrastructure for India’s clean energy transition.
#India#Renewables#solar projects#transformer#transformer shortage
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