introduction
As the conflict in Ukraine gradually subsides, post-war reconstruction has become a focus of international attention. Ukraine’s infrastructure suffered heavy damage during the war, especially the power system, with a large number of substations, transmission lines, and transformers destroyed. This has brought huge market opportunities for global transformer manufacturers, and Chinese transformer manufacturers are expected to occupy an important position in the post-war reconstruction transformer market in Ukraine with their advantages in cost, technology, and production capacity. Junengda Electric（ info@qdjunengda.com ）With modular design technology, intelligent monitoring systems, and fast payment delivery capabilities, it has significant advantages in the field of reconstruction.
market background
1. Post war damage situation
>>According to the International Energy Agency (IEA) and relevant international organizations, about 40% of Ukraine’s power grid has been damaged to varying degrees during the war, with a large number of transmission lines and substations severely damaged or even completely destroyed. There is an urgent need for the Junengda Electric oil immersed transformer series products. In the core areas of conflict in the east and south, such as the Donbass and Kherson regions, the rate of infrastructure damage is higher, and many towns and villages experience complete power outages.
>>According to a report from the Ukrainian Ministry of Energy, at least 5000 transformers of various types have been damaged or scrapped, including a large number of medium and high voltage power transformers ranging from 35kV to 232kV, as well as distribution transformers of 10kV and below. Like Kharkiv Oblast, as an important industrial region, it had a large number of industrial enterprises before the war, and its supporting transformers were heavily damaged during the war, resulting in many factories being unable to resume normal production. In the vicinity of Kiev, the main transformers of some substations were hit by missiles, causing power supply difficulties in certain areas of the city and seriously affecting residents’ lives and commercial activities.
>>According to the World Bank’s assessment, about 40% of Ukraine’s power infrastructure (including substations and transmission lines) was damaged during the war and needs to be fully rebuilt. The 35k compact prefabricated transformer station of Junengda Electric can quickly build temporary power supply.
The key requirements are focused on:
High voltage/ultra-high voltage transformers (220kV and above): used for repairing the main power grid;
Medium and low voltage distribution transformers (10kV-35kV): covering urban and rural areas for power supply;
Compact prefabricated substation: Quickly deploy temporary power nodes.
2. Policy and financial support
>>The EU’s “Ukraine Recovery Plan” promises to provide over 50 billion euros in aid, with the energy sector accounting for more than 30%. The EN-62271 standard certified products of Junengda Electric can be directly integrated into European funding support projects;
>>International financial institution financing: World Bank and European Bank for Reconstruction and Development (EBRD) special loans prioritize supporting power projects;
>>Local policy tilt: The Ukrainian government plans to simplify the customs clearance process for imported equipment and provide tax incentives to attract foreign investment.
Market demand analysis
（1） Short term emergency needs
1. Transformers required for emergency repairs and temporary power supply: Ukraine urgently needs a large number of transformers for emergency repairs and temporary power supply in the short term. Small box type transformers, movable transformers, etc. can quickly build temporary power supply systems to alleviate the urgent power shortage.
2. Estimated demand and timeline: According to the Ukrainian energy department’s plan, the number of transformers required for emergency repairs and temporary power supply is expected to reach 3000-5000 units in the next 1-2 years. Junengda Electric‘s flexible production line achieves a monthly production capacity of 400-800 transformers, accurately covering urgent orders.
（2） Long term reconstruction needs
1. To meet the demand for comprehensive infrastructure reconstruction: In the long run, Ukraine plans to upgrade and rebuild the entire power system, including the construction of new substations, transmission lines, and the renovation of old power grids. This will drive the sustained demand for various high-performance and high reliability transformers, such as large capacity power transformers for backbone power grids and energy-saving distribution transformers for urban and rural distribution networks. Junengda Electric‘s intelligent transformer (with built-in DGA online monitoring system) can help Ukraine’s power grid achieve digital operation and maintenance.
2. Analysis of Ukraine’s future energy development plan: Ukraine is committed to developing renewable energy sources such as solar and wind energy in the future. This means that in the integration of new energy generation into the grid, a large number of special types of transformers will be required, such as step-up transformers for photovoltaic power plants and combination transformers for wind farms, to achieve efficient integration of new energy with traditional power grids.
（3） Specific project areas
High voltage direct current (HVDC) transformer: a cross-border transmission project connecting Ukraine and the European power grid (such as the “Green Corridor” plan)
Renewable energy supporting equipment: customized step-up transformers are required for wind/photovoltaic power plants
Urban underground substations: Kiev, Kharkiv and other major cities are promoting underground transformation due to air defense needs
Response strategies of transformer enterprises
（1） Product Strategy
1. Optimize product structure to meet different needs: In response to the short-term and long-term demands of the Ukrainian market, enterprises should optimize their product structure. On the one hand, Junengda Electric has increased its investment in the production and research and development of small and convenient transformers and box type transformers to meet the needs of emergency repairs and temporary power supply; On the other hand, JuNengda Electric develops and produces new transformers that are suitable for the integration of new energy and the development of smart grids, such as high impedance transformers, on load tap changers, intelligent integrated transformers, etc., to meet the long-term upgrading needs of Ukraine’s power system and the development of new energy.
2. Strengthen technological innovation and enhance product competitiveness: Junengda Electric continues to invest in research and development, strengthens cooperation with scientific research institutions and universities, breaks through key technological bottlenecks, such as improving the energy efficiency level of transformers, enhancing short-circuit resistance, and improving intelligence. Through technological innovation, improve product performance and quality, reduce production costs, and differentiate products to stand out in market competition.
（2） Market Strategy
1. Strengthen market research and accurately target customers: Junengda Electric conducts in-depth market research in Ukraine to understand local power system planning, customer demand characteristics, and competitor situations. Based on the research results, develop personalized marketing strategies and provide customized products and solutions.
2. Diversified marketing channels to enhance brand awareness: In addition to participating in traditional marketing methods such as international power equipment exhibitions and industry seminars, Junengda Electric strengthens cooperation with local distributors and agents, establishes a sound sales network, and improves product market coverage. Actively participate in bidding for Ukrainian power projects and enhance brand awareness and reputation through high-quality projects.
（3） Collaboration Strategy
1. Cooperate with local enterprises to achieve mutual benefit and win-win situation: Junengda Electric can maintain contact with local power engineering companies, equipment installation companies, distributors, etc. in Ukraine, utilize the resources and channel advantages of local enterprises, quickly open up the market, and achieve mutual benefit and win-win situation.
2. Strengthen international cooperation and jointly explore the market: Junengda Electric strengthens cooperation with internationally renowned enterprises and financial institutions to jointly participate in investment and construction of Ukrainian power projects. Collaborating with international enterprises allows for learning advanced technology and management experience, enhancing one’s competitiveness; Collaborating with financial institutions can solve project financing problems and reduce investment risks.
Risks and Challenges
1. Payment risk
The Ukrainian government’s finances are tight, and some projects rely on international loans. Attention should be paid to the prepayment ratio and letter of credit terms
Suggestion: Prioritize participating in projects directly funded by EBRD or the European Union, collaborate with local companies, and avoid 15% import tariffs
2. Supply Chain and Logistics
Black Sea port transportation remains restricted, with cross-border costs via Poland/Romania increasing by 20% -30% by land
Countermeasure: Cooperate with local agents to establish spare parts warehouses and shorten delivery cycles
3. Technical standards and certifications
Ukraine is gradually adopting EU standards (EN/IEC) and requires prior CE certification and localized testing (such as UkrSEPRO)
Special requirement: Some areas require explosion-proof design (for the risk of uncleared explosives)
4. Trade barriers and policy risks
The international political and economic situation is complex and ever-changing, trade protectionism is on the rise, and Chinese transformer companies may face trade barriers set up by Ukraine or other countries, as well as uncertainty in domestic policies in Ukraine