Project EU-TRACE: anticipated replacement of old distribution transformers
Year: 2026
Type: conference-paper
Abstract: Meeting the EU's ambitious energy savings targets under the Energy Efficiency Directive (EED) requires exploiting all viable measures, including the accelerated replacement of ageing, inefficient distribution transformers. This paper presents initial insights from the LIFE-supported EU-TRACE project, which started in September 2025 and will run until March 2028. EU-TRACE seeks to develop policy recommendations to unlock the substantial energy savings potential of replacing legacy transformers with Ecodesign-compliant units.Modern, Ecodesign compliant distribution transformers offer significantly reduced energy losses through advances in core materials, winding design, and cooling systems. Despite the clear benefit, current EU regulatory frameworks do not explicitly incentivise early replacement. For DSO-owned transformers, revenue-cap mechanisms may discourage capital expenditure where efficiency benefits are not adequately reflected in remuneration. For transformers owned by electricity end-users, split incentives and limited awareness – among other barriers – hinder a swift uptake of Ecodesign compliant units. Closing this gap requires targeted regulatory adjustments for DSOs (supported by art. 27 of the EED), and dedicated incentive mechanisms for electricity end-users (under art. 8 of the EED). Impact estimates based on available data suggest that accelerating replacement from a 2.2% to a 3.5% annual rate could deliver additional electricity savings of 2.1 TWh per year over a 20-year horizon. The EU-TRACE project will address the challenges through the following actions:· Gather data on EU transformer fleets and model different policy scenarios and their outcomes in terms of energy savings and emissions abatement.· Promote knowledge exchange across distribution system operators, regulatory authorities, electricity end-users and energy agencies. · Propose appropriate policies aimed at accelerating the uptake of energy efficient transformers and assisting Member States in achieving their energy saving targets.· Analyse the impact of replacement policies on the EU circular economy goals. · Analyse the impact of replacement policies on the transformer market, involving the entire value chain (raw material providers, OEMs, end-users)
Language: English
Field: Energy
Domain: Physical Sciences
Open Access status: green
OpenAlex ID: W7220929933