Resilient & Optimised Grids Circular transformers for secure grid supply chains

Transformers are a key component for the development of the needed electricity grid infrastructure to reach decarbonisation goals. 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, our upcoming webinar on 22 September will dive into Hitachi Energy’s initiative to incorporate circular measures for transformer supply chains.

Circular transformer for secure grid supply chains

Showcasing Hitachi Energy’s approach to transformer circularity, structured around the 5R framework (Rethink, Reduce, Reuse, Repair, Recycle), the webinar will dive deep into their initiatives across the value chain, from transformer design to end-of-life management.

The presentation will share insights from the pilot initiative with Elia Group, which closes the loop at the assets’ end of life to recover critical materials from decommissioned transformers.  This not only supports grid operators’ sustainability and circularity goals, but also enhances European energy and supply chain security in the face of increasing supply chain disruptions.

Interested in contributing?

We are happy to expand our network! Contact us below if you would like to be involved in our work or showcase a specific practice on implementing circular approaches within electricity grid supply chains.