Power Transformer Supply Chains in Crisis: What Buyers Must Know

Arthur Claire
04 juni 2025


This article is summarizes the webinar “Transformers: Pricing, Procurement, and Best Practices,” hosted by Sinovoltaics in collaboration with Rystad Energy.

To watch the full webinar replay, please click this link.

The global energy transition is accelerating, but grid infrastructure can’t keep up. As demand for power transformers surges, supply chains are beginning to crack under pressure. In a recent Sinovoltaics webinar, Edvard Christofferson (Rystad Energy) and Arthur Claire (Sinovoltaics) shared urgent insights into the hidden risks in the transformer market and best practices for procurement.

Why Transformers Have Become a Bottleneck

Today’s energy systems are facing a tough reality: the supply of power transformer supply is critically limited.

  • Global power demand is growing at a rate of 2.7% per year.
  • Renewable capacity is expected to reach 50% by 2025.
  • Transformer supply has only grown 5% since 2020.
  • Prices have soared by 40 to 60%.

Lead times in some regions now stretch as long as eight years, particularly in Europe. While China has stepped in to help meet global demand by doubling its exports, this shift brings new challenges related to supply chain traceability and regulatory compliance.

Procurement Risks Are Rising — Here's What You Can Do

Arthur highlighted a major concern: some manufacturers quietly outsource production, leaving buyers with components that cannot be verified.

To reduce procurement risks, Arthur recommends the following:

  • Conduct  factory audits during supplier selection and before production.
  • Include detailed technical specifications and FAT checklist in contracts.
  • Require Transformer Testing: Factory Acceptance Testing (FAT testing) including visual inspections and electrical tests.


How To Test A Transformer & What To Test:
When conducting FAT and quality inspection services or assessments, be sure to include:

  • Oil quality: dielectric, moisture content, dissolved gases.
  • Heat tolerance: temperature rise testing.
  • Noise levels: critical in regions with EU regulations.


Build Contracts That Protect Your Project

If it’s not in the contract, it won’t be enforced. That was a key takeaway from both speakers.

Every transformer procurement contract should include:

  • Technical specifications and inspection rights
  • A FAT checklist and detailed reporting rights
  • ESG and traceability clauses
  • Penalties for delays or non-compliance

To help buyers avoid unreliable suppliers, Sinovoltaics has also released a map of verified transformer factories in Mainland China.

Key Regulatory and Market Trends

Here are top insights from the webinar’s Q&A session:

  • While not currently a major focus, compliance with the UFLPA may become critical for transformers shipped to the United States.
  • US transformer capacity is expanding rapidly, driven by demand from data centers and demand for solar energy projects.
  • Prices are expected to remain high through 2025, possibly easing in 2026 or 2027.
  • ESG requirements are increasingly driven by project lenders, especially in the Europe and Nordic countries.


Procurement Team Checklist

Before committing to a supplier, make sure your team has:

  • Verify the exact manufacturing location
  • Request FAT checklists and test data
  • Included ESG and traceability clauses in the contract
  • Reviewed components specifications and spare parts sourcing

Final Thoughts
Transformer shortages are unlikely to resolve overnight. However, you can protect your projects through proactive procurement, thorough supplier selection process, and strong contract management.

Looking to make smarter purchasing decisions? Explore Sinovoltaics’ transformer quality inspection services today or explore the Mainland China Transformer Factories Map.