Power grids: who buys transformers, cables and switchgear in 2026

In 2026, the buyers of transformers, cables and switchgear are first and foremost electricity transmission and distribution system operators, followed by the EPC contractors that build substations and lines, the independent power producers that connect their plants to the grid and the distributors of medium- and low-voltage equipment. The major published programmes are found in particular in the European Union, Saudi Arabia, Morocco, India, sub-Saharan Africa and Ukraine. Global grid investment is expected to rise by almost 20% in 2026, to around $550 billion, according to the International Energy Agency's (IEA) World Energy Investment 2026 (Industrial Info, 3 June 2026).

Why is grid equipment purchasing accelerating in 2026?

Three forces are combining. The first is volume: the IEA expects grid investment to rise by almost 20% in 2026, and battery storage investment by more than 35%, to around $110 billion (Industrial Info, 3 June 2026). Every new power plant and every storage system has to be connected.

The second is scarcity. According to a survey cited by the IEA, procurement takes up to four years for large power transformers and two to three years for cables; for direct-current cables, the lead time exceeds five years. In real terms, the price of power transformers has risen by around 75% since 2019 and that of cables has almost doubled (T&D World, 27 February 2025).

The third is Chinese competition. Chinese transformer exports exceeded 64.6 billion yuan ($9.29 billion) in 2025, up almost 36%, with the average unit price up by around a third (Henan provincial government, 20 March 2026). Over the first eight months of 2025, exports to Europe jumped by more than 138% (36Kr, 6 January 2026).

For a European manufacturer, the decisive argument is therefore not price alone. It is the available manufacturing slot, compliance with the buyer's specifications and security of supply.

Who actually buys transformers, cables and switchgear?

Four families of buyers coexist, with different purchasing channels.

• Grid operators. The transmission system operator (TSO) runs the high- and extra-high-voltage network; the distribution system operator (DSO) runs the medium- and low-voltage network. They are the end buyers of substations, transformers and cables. Public or regulated, they buy through tenders or framework agreements, after technical qualification of suppliers.
• EPC contractors. An EPC (engineering, procurement and construction) company delivers a substation or line on a turnkey basis and chooses its equipment suppliers from the list approved by the client. For an SME, this is often the most realistic way in.
• Independent power producers (IPPs). They build solar, wind or storage plants and buy, directly or through their EPC contractor, the step-up transformers, cables and grid connection switchgear.
• Distributors and wholesalers. For standardised medium- and low-voltage equipment (switchgear panels, protection, cable accessories, metering), the buyer is an importer or wholesaler that resells to installers and electrical contractors.

The right contact therefore depends on the product: a large power transformer is sold to the grid operator or its EPC contractor, while a range of cable accessories is sold first to a distributor.

Where are the major investment programmes in 2026?

In Europe, 40% of distribution networks are more than 40 years old, the European Commission points out. In Morocco, the ONEE plan adds 11.6 GW of renewable capacity and 2.6 GW of storage by 2030, each requiring grid connection equipment (Morocco World News, 28 July 2026). In India, transformation capacity is set to rise from 1,251 to 2,342 GVA by 2032 (Business Today, 15 October 2024). In Africa, Mission 300 had connected more than 50 million people in 40 countries by June 2026, towards a target of 300 million by 2030 (Engineering News, 17 June 2026); its national compacts precede donor-funded tenders.

Ukraine buys continuously. In July 2026, the energy support fund signed €78.4 million of contracts covering power transformers, high-voltage equipment, protection systems, cables and backup power sources (Ukrainian Ministry of Energy, 8 August 2026). Purchases are run by an independent agent, UTA-Sweco, on its own platform (Energy Community, 16 September 2026). On 2 September 2026, Germany added €250 million, intended in particular for an emergency reserve of transformers and high-voltage equipment (KfW).

Which eligibility rules change the picture?

Access does not depend on product quality alone. Five rules carry weight in 2026.

In the EU, the NZIA resilience criterion. The Net-Zero Industry Act (NZIA, Regulation 2024/1735) has applied to public procurement since 30 December 2025. Where more than 50% of the Union's supply of a net-zero technology or its components depends on a single third country, public buyers must apply non-price criteria, including the contribution to resilience; the share of value originating from that country is then capped at 50% (Weka, 30 July 2025). On 23 May 2025, the Commission adopted the list of products and components liable to trigger this criterion (European Commission). Whether the equipment in question appears on it must be checked contract by contract.

In Saudi Arabia, national preference. In public procurement, a foreign bid may be evaluated as if it were 10% more expensive than a national product, and a mandatory list of national products applies to public entities (Clyde & Co, 1 September 2026). The regional headquarters rule excludes companies without a regional headquarters in the Kingdom, unless an exemption is requested on the Etimad platform before the tender; contracts below SAR 1 million are exempt (Enterprise AM, 24 February 2026).

In Morocco, reserved thresholds. Since 1 September 2023, Decree 2-22-431 has reserved supply contracts below MAD 1 million and works contracts below MAD 10 million for companies established in Morocco; above those amounts, foreign bids may be increased by up to 15% for comparison purposes (Medias24, 24 March 2023).

In India, central government procurement. Since 2020, central government ministries and bodies no longer launch global tenders up to Rs 200 crore, unless an exemption is granted; the states are not bound by this rule (Economic Laws Practice, 28 July 2020).

In Ukraine, the origin of goods. Contracts financed by the Ukraine Facility are reserved for companies and goods from eligible countries, including the EU, and exclude beneficial owners sanctioned by the EU (Interfax-Ukraine, 29 September 2025).

How do you identify a buyer before the tender?

The tender comes late. Useful signals appear earlier and are public:

• the investment plans of power utilities and grid development plans;
• Mission 300 national energy compacts, which announce the projects that the World Bank and the AfDB will finance;
• the award of power plants to independent producers, which signals upcoming purchases of grid connection equipment;
• published contract notices: the TED database in the EU, donor portals, the platform of the Ukrainian fund's procurement agent.

For each lead, three checks avoid disappointment: who the end buyer is and how it buys (directly, through an EPC contractor or through a distributor); which eligibility rules apply; and whether delivery is feasible. On this last point, the Gulf calls for particular caution: on 4 October 2026, only 4 vessels transited the Strait of Hormuz, compared with 85 a day before the crisis (straits.live, 12 October 2026). A delivery to Saudi Arabia should therefore be planned via the Red Sea or via the east coast of the UAE.