Since 2000, driven by the urban and rural power grid renovation projects, China's distribution transformer industry has maintained a good development momentum. In 2008, the annual output of distribution transformers in China exceeded 400 million KVA, accounting for nearly 40% of the total annual output of transformers. In 2010, China's transformer production reached 1.223 billion KVA. Based on a 40% ratio, it is estimated that the newly added distribution transformer production in 2010 will reach 534 million KVA. In 2010, the manufacturing industry of distribution transformers achieved an output value of approximately 42.518 billion yuan, a year-on-year increase of 18.84%.
With the continuous deepening of China's "energy-saving and consumption reducing" policy, the country encourages the development of energy-saving, low-noise, and intelligent distribution transformer products. The high-energy consumption distribution transformers operating on the grid are no longer in line with industry development trends and are facing the demand for technological upgrades and replacements. In the future, they will gradually be replaced by energy-saving, material saving, environmentally friendly, and low-noise transformers.
