High-End Silicon Steel Saves Massive Power via Transformer Upgrades

Agosto 8, 2026 Blog

Beijing, April 20 — As reported by China Central Radio and Television’s Economic Voice, silicon steel (also widely known as electrical steel) is a silicon-alloyed steel material that serves as the indispensable core component for manufacturing transformers, motors, generators and various electromagnetic power equipment. Industry experts confirm that high-end silicon steel boasts enormous application potential in the global energy sector. Notably, large-scale upgrades of existing power transformers using premium silicon steel can save annual power generation equivalent to the total output of the Three Gorges Dam.

Two Core Types of Silicon Steel and Hierarchical Application Scenarios

Silicon steel is professionally categorized into two core grades: grain-oriented silicon steel and non-oriented silicon steel, with distinct functional properties and industrial applications.

Grain-oriented silicon steel is primarily applied in static electromagnetic equipment such as power transformers, relays and rectifiers. It is further divided into conventional oriented silicon steel and high magnetic induction (Hi-B) oriented silicon steel. While both grades can be used for transformer iron cores, Hi-B high-end silicon steel effectively minimizes electrical energy loss and delivers superior energy-saving performance.

Currently, a large number of low-efficiency transformers in China still adopt conventional oriented silicon steel. To accelerate energy conservation and carbon reduction, the National Development and Reform Commission (NDRC), together with nine government departments, jointly released the Implementation Guidelines for the Renewal, Renovation, and Recycling of Power Transformers (2023 Edition), setting clear targets for improving transformer energy efficiency. Fan Tiejun, Director of the Metallurgical Industry Planning and Research Institute, pointed out that nationwide transformer renovation will strongly boost market demand for high-end oriented silicon steel.

Huge Energy-Saving Value: Transformer Upgrades Equals Three Gorges Dam’s Annual Power Output

“China’s existing transformer self-consumption reaches 2 to 2.5 times the annual power generation of the Three Gorges Dam,” Fan Tiejun explained. “Upgrading traditional transformers with high magnetic induction oriented silicon steel can save over 9 billion kilowatt-hours of electricity every year, nearly matching the Three Gorges Dam’s total annual power generation capacity.” This fully demonstrates the outstanding energy-saving advantages of high-end silicon steel in power grid operation.

Ultra-High Voltage Grid Construction Drives High-Grade Silicon Steel Demand

Ultra-high voltage (UHV) power transmission represents another key application scenario for high-end oriented silicon steel. UHV main transformers feature ultra-large volume, with individual units comparable to the size of a two-story building, making energy efficiency and noise reduction critical for operational performance.

According to Dr. Sun Jiantao from the China Electric Power Research Institute, high-end oriented silicon steel comprehensively optimizes UHV transformer performance. Compared with ordinary silicon steel sheets, high-grade products increase magnetic induction by more than 8%, greatly reducing iron core loss and equipment volume. Meanwhile, it cuts operational noise by 5 decibels, with single-unit capacity reaching 3 to 4 times that of conventional 500kV single-phase transformers.

Industry investment data highlights robust industry growth. State Grid Corporation of China plans to raise its annual investment to RMB 520 billion, with UHV project investment exceeding RMB 100 billion. Accelerated UHV grid construction and global energy transition progress will continuously drive incremental demand for high-end oriented silicon steel. Large-scale wind and photovoltaic base projects also rely on Hi-B silicon steel to reduce power transmission loss, further expanding its application scope in new energy power systems.

Booming New Energy Vehicle Market Fuels Non-Oriented Silicon Steel Growth

Different from oriented grades, non-oriented silicon steel is mainly used for rotating power equipment, including industrial generators and new energy vehicle (NEV) drive motors. The explosive growth of the global NEV industry has triggered a surge in demand for high-end non-oriented silicon steel in China.

Zhao Songshan, Assistant General Manager of Shougang Zhixin Qian’an Electromagnetic Materials Co., Ltd., shared the company’s industrial layout and market performance: “As early as 2022, Shougang achieved bulk supply for the top 10 domestic new energy vehicle brands, securing a 45% domestic market share. Statistically, one out of every three new energy vehicles manufactured in China adopts Shougang’s silicon steel products. At present, we have realized bulk supply for 8 of the world’s top 10 NEV brands.”

Industry Forecast: Dual High-End Silicon Steel Segments See Doubling Growth Potential

Industry insiders are highly optimistic about the long-term development of high-performance silicon steel. Zhao Songshan predicted that both high-end oriented and non-oriented silicon steel markets have huge room for expansion, with expected doubled market size in the next few years.

From 2023 to 2030, China’s incremental demand for oriented silicon steel will reach 2.5 million to 3 million tons. Driven by rising power consumption and favorable industrial policies, the market demand for high-grade non-oriented silicon steel is projected to hit 4.7 million tons by 2025, representing a net increase of 2.7 million tons compared with 2020.

Konklusyon

High-end oriented silicon steel empowers efficient upgrades of power transformers and UHV power grids, delivering remarkable energy-saving benefits equivalent to the annual power output of the Three Gorges Dam. Meanwhile, high-end non-oriented silicon steel underpins the rapid development of the new energy vehicle industry. Driven by power grid renovation, UHV construction and booming new energy markets, China’s high-performance silicon steel industry will maintain sustained and rapid growth, becoming a core supporting material for global energy transformation.

Mga tag: silicon steel