Working Principle and Market Analysis of Compact Substation

I.Working principle

Substation is the core hub of the power system, which realizes the transmission, conversion and distribution of electric energy through electromagnetic induction and electrical control technology. Its working principle can be divided into the following core links:

1. Voltage conversion

Boosting: The electric energy generated by the power plant is usually 10-35kV, which is increased to 110kV~1000kV through the step-up transformer to reduce the line loss of long-distance power transmission.

Reducing voltage: After the high-voltage electricity reaches the power consumption area through the transmission line, it is gradually reduced by the substation to the voltage level that users can directly use (such as 10kV, 400V).

Key technology: Based on the principle of electromagnetic induction, the voltage is increased or decreased by adjusting the turns ratio of the transformer coil.

2. Power distribution

The power is distributed to different lines through the busbar, and the current flow is controlled by circuit breakers, disconnectors and other equipment to ensure that the power is distributed to industry, commerce or residential areas as needed.

3. System protection and control

Real-time monitoring: Current transformers (CT) and voltage transformers (PT) collect circuit parameters.

Fault isolation: Relay protection devices detect short circuits, overloads and other anomalies, triggering circuit breakers to cut off fault areas within milliseconds.

Intelligent control: SCADA systems remotely monitor load balance and reactive power compensation to optimize grid stability.

II. Core functions

Voltage regulation

Adapt to different transmission distances, match voltage levels at the power generation end and the user end, and ensure efficient transmission of electric energy.

Power distribution

Through multi-level busbars and switchgear, electric energy is accurately distributed to different users or regional power grids.

Safety protection

Lightning protection: Lightning arresters absorb lightning overvoltage and protect equipment from impact.

Fault isolation: Quickly cut off fault circuits to prevent grid collapse.

Reactive power compensation

Configure capacitor banks or reactors to improve power factor and reduce line losses.

Data monitoring

Integrate sensors and automation systems to monitor parameters such as temperature, load, and harmonics in real time to support intelligent decision-making.

III.Market Analysis
By 2025, the global substation equipment market will continue to grow steadily. According to industry analysis agencies, the current market size is expected to reach approximately US$152 billion, of which transformers as core components will still maintain a share of 45%-48%, and the average annual compound growth rate (CAGR) will be raised to 6.2%. The core driving factors for market expansion continue to deepen: first, under the background of global energy structure transformation, the demand for wind power and photovoltaic power generation grid connection has driven a significant increase in the scale of investment in smart transmission and distribution systems; second, developed economies such as Europe and the United States have accelerated the digitalization and flexibility of power grids, and the equipment update cycle has been shortened by 12%-15% compared with the original plan; third, emerging markets (through the National Electrification Initiatives) have driven the construction of substations into a high-speed growth stage.

Regional Market Insights

IV. Application scenarios

Urban power grid

Demand characteristics: limited space, high reliability requirements.

Solution: Indoor GIS substation, European box transformer (modular design, protection level IP54 or above).

Industrial and park power supply

Demand characteristics: large load fluctuations, many harmonic interferences.

Solution: customized transformers (such as rectifier transformers), dynamic reactive power compensation devices.

Renewable energy grid connection

Demand characteristics: frequent voltage fluctuations, harsh environment (such as offshore wind power).

Solution: wide voltage regulation range transformer (±10% on-load voltage regulation), anti-corrosion box transformer.

 

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