Transformer Shortage in Ireland: Impact on Renewable Energy and Construction

The world is facing a critical shortage of electrical transformers, a vital component of the power grid that ensures the smooth flow of electricity from generation sources to consumers. While the issue spans the globe, its impact is particularly acute in Ireland, where ambitious renewable energy targets and a booming construction sector are colliding with this critical supply chain bottleneck.  

The transformer shortage stems from a confluence of factors:

• Surging Demand: The global push towards electrification, fueled by the rise of electric vehicles, renewable energy sources, and data centres, has dramatically increased the demand for transformers.  

• Supply Chain Disruptions: The COVID-19 pandemic, geopolitical tensions, and disruptions in the supply of raw materials like steel and copper have hampered transformer production.  

• Manufacturing Complexity: Transformers are complex pieces of equipment, requiring specialised manufacturing processes and long lead times. This makes it difficult to quickly scale up production to meet the surging demand.  

  
  

Hitachi are one of the leading global suppliers of transformers.

Hitachi Energy, a leading global supplier of transformers, acknowledges the severity of the shortage. The company has announced a significant investment of over $1.5 billion to expand its manufacturing capacity and shorten lead times. While this investment is a welcome step, the impact of these efforts will take time to materialise.  

Ireland's Unique Challenges

In Ireland, the transformer shortage poses a significant threat to the country's ambitious climate action goals. The government's Climate Action Plan aims to dramatically increase the share of renewable energy in the electricity mix, requiring substantial grid upgrades and the installation of numerous transformers to accommodate new wind and solar farms.

Furthermore, Ireland is grappling with a housing crisis, with the government aiming to deliver 33,000 new homes annually. This construction boom, coupled with funded renovations of existing buildings, which may be derelict and in need of supply to the grid, is further exacerbating the demand for transformers.

The Irish goverment is comitted to building 33, 000 homes annually.

The Impact on Irish Construction

The transformer shortage is already causing delays and disruptions in Irish construction projects. At ENX Engineering, as a leading MEP consultancy in Ireland, we can already report experiencing firsthand the challenges posed by this shortage. Delays in obtaining ESB transformers are impacting project timelines, affecting testing, commissioning, and ultimately, project handover.

This situation has the potential to ripple through the entire construction sector, delaying project completions, increasing costs, and hindering Ireland's efforts to address its housing needs.

The transformer shortage is a wake-up call for Ireland. It underscores the need for a more resilient and agile energy infrastructure, capable of adapting to the rapid growth of renewable energy and electrification.

Also read: ENX Engineering: Navigating Irish Sustainability Standards with Expert Lifecycle Carbon Assessments

To mitigate the impact of this shortage, Ireland must:

• Prioritise domestic transformer manufacturing: Exploring opportunities to boost domestic production of transformers can reduce reliance on global supply chains.

• Invest in grid modernisation: Upgrading and expanding the electricity grid is crucial to accommodate the influx of renewable energy and support the electrification of transport and heating.  

• Promote energy efficiency: Implementing measures to reduce energy demand can lessen the strain on the grid and reduce the need for new transformers.

• Foster collaboration: Encouraging collaboration between government, industry, and research institutions can accelerate the development and deployment of innovative solutions.  

  
  

The global transformer shortage is a complex challenge with significant implications for Ireland's energy future. By proactively addressing this issue, Ireland can ensure that its ambitious climate action goals and housing targets are not undermined by a critical supply chain bottleneck. The time for action is now, and a coordinated effort is needed to build a more resilient and sustainable energy infrastructure for Ireland.