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A Growing Electricity Market in Russia

As a country with the largest territory globally, Russia, stretching vastly over Europe and Asia, has abundant natural resources. Russia is particularly rich in mineral resources, including coal, oil, natural gas, iron, manganese, copper, lead, and zinc. In the 1950s, the Soviet Union established a super grid here. This grid covered 20 socialist republics, laying the foundation for interconnecting the power grids of Central Asia and Eastern Europe. In the 1980s and 1990s, they built ultra-high-voltage transmission lines traversing the Eurasian, transmitting hydropower from Siberia and thermal power from Kazakhstan to some electrical load centers.

Reference Image (1).jpg(Source: Soviet Union, electric power)

After the dissolution of the Soviet Union, Russia inherited the super grid and energy infrastructure. However, this rich legacy also left behind some challenges: aging power grids and electrical equipment, which have resulted in several power blackouts in Russia. Most of these power blackouts occur due to a significant increase in electricity demand, leading to overloading and tripping. Moreover, Russia’s power grid has been in use for an extended period, with more than half of the grid equipment purchased in the Soviet Union having been operated for over 30 years. As a result, the line loss rate of Russia's power grid is twice that of developed regions in Europe and North America.

To address this challenging situation, Russia has increased its investment in grid construction and upgraded power equipment and transmission lines by 2020. In some cold regions of Russia, over 10 million people and 5 million farms cannot connect to the power grid, which relies on natural gas and diesel generators for electricity supply. Microgrids and distributed generation also play a significant role in these areas. According to a program for developing the domestic coal industry until 2035, they plan to construct seven new thermal power plants by 2035 and upgrade 12 coal-fired power stations in Siberia and the Far East. The total coal-fired generation capacity is expected to be between 7 GW and 9.6 GW.

Reference Image (5).jpg(Source: Energy Education)

The investment in power grid upgrades, microgrid construction, and renewable energy has created significant opportunities for related electrical equipment. According to a research report by Bonafide Research on the Russian Transformer Market Overview 2028, it is projected that the Russian transformer market will grow at a CAGR of 4.82% from 2023 to 2028. Technological improvements related to transformers are crucial for enhancing Russia’s power infrastructure, grid reliability, and energy efficiency. Especially, smart grid technology integration will be a key driver for modernizing electric power construction.

In recent years, the Russo-Ukrainian War has triggered a series of sanctions by Western countries against Russia. Some Russian domestic power companies have been expanding their investments in Asia, Africa, and other regions to sell electricity and explore new markets. As Russia accelerates its power infrastructure development, the demand for various types of transformers has also increased. Power transformers play a crucial role in elevating voltage levels and facilitating long-distance transmission lines across borders. For instance, in recent years, Russia has strengthened its cooperation with China. The construction of an ultra-high-voltage transmission line from Russia to Hebei province will enable the delivery of thermal-generated power from Russia to North China’s load centers.

There are many types of power transformers; according to a report from Bonafide Research, based on the cooling type market, the oil-cooled type transformer is expected to dominate the market in Russia for its low maintenance and low costs. In terms of mounting, the pad-mounted transformer is suitable for densely populated markets with limited room in Russia because it can be put on the ground. Since the three-phase transformer is famous for its stable and reliable features, this type of transformer can also dominate the Russian market. In addition, dry-type transformers also have a potential market share in this area.

CEEG has rich experience in transformer manufacturing, with high-quality products and an advanced research team. Over the past 35 years, they have exported many excellent products to more than 80 countries globally. We look forward to more collaboration opportunities with Russia and various countries!

CEEG Traction Rectifier Dry-Type Transformers Supplier 1000kVA 2000kVA 3000kVA.jpg

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