Power transformer sustainability - phase 2

Building on the momentum of the first phase of the Power Transformer Sustainability Joint Industry Project (JIP), DNV is proud to launch Phase 2, aimed at closing critical gaps in methodology, data, and standardization to further enhance the sustainability of power transformers across their lifecycle.

From foundations to forward motion

In Phase 1, the JIP successfully developed a methodology to conduct a comprehensive Life Cycle Assessment (LCA) for power transformers. This included:

• Defining a functional unit
• Establishing system boundaries
• Setting Key Performance Indicators (KPIs)
• Creating allocation procedures and scenario modelling
• Aligning with relevant standards such as ISO 14067.

The final report of phase 1 is now publicly available and has laid the groundwork for broader industry collaboration.

However, during the conclusion of phase 1, five critical gaps were identified, which need to be addressed to enable actionable sustainability strategies across the transformer industry.

Phase 2: Targeting five key gaps

Phase 2 of the JIP introduces a structured approach to address the following industry-wide challenges:

1. Integrating Product Category Rules (PCR) into Recommended Practices

The goal is to align methodologies for key materials (steel, copper, transformer oil) with recommended practices by:

• Identifying relevant standards
• Evaluating compatibility with transformer sustainability needs
• Proposing minimal amendments to ensure interoperability.

2. Establishing a mass balancing framework

To avoid greenwashing and ensure credibility in sustainability claims, this work package aims to:

• Develop an industry-accepted mass balance methodology
• Enable verified emissions reduction and recycled content tracking
• Recommend audit practices and minimum disclosure standards.

3. Advancing circularity and recycled material accounting

With material scarcity on the rise, this work package focuses on:

• Assessing existing circularity standards
• Proposing scope for a digital product passport
• Defining end-of-life recovery metrics for transformer materials.

4. Standardizing digital data exchange for LCA

As LCA becomes a mainstream decision tool, digital standardization is essential. This effort will:

• Define requirements for traceable, interoperable data formats
• Review current formats and best practices
• Add to the existing guidance for LCA in transformers.

5. Economic impact assessment with a TCO framework

To help stakeholders make well-informed investment decisions, the JIP will develop a Total Cost of Ownership (TCO) model that includes:

• CAPEX, OPEX, environmental and circularity costs
• Risk and uncertainty assessment
• Sensitivity analysis and monetized Cost-Benefit Analysis (CBA)

Broadening the impact

While the core focus remains on high-voltage power transformers, insights from this phase may also be extended to relevant areas of medium-voltage equipment. This ensures that sustainability gains are not siloed, but ripple across the broader grid infrastructure.

Join the initiative

We invite manufacturers, utilities, regulators, academics, and technology leaders to take part in this next phase. By participating, you'll contribute to shaping the future of transformer sustainability-grounded in science, transparency, and practical application.