Distribution grids, mini-grids and interconnectors: Correlation
Prices it moves with, and why
Distribution networks deliver power at lower voltage through transformers, switchgear, poles and cables. Utilities recover costs through regulated tariffs, while equipment prices follow metals, factory capacity and demand from new housing, solar and vehicle charging.
Proxy US PPI: switchgear and switchboard apparatus index (BLS base period =100) · monthly, Jan 2006 to Sep 2026There is no free public price for distribution grids, mini-grids and interconnectors itself, so this tab uses the closest public series as a stand-in. Read the numbers as an indication, not as the price of this exact item.
What its price moves with
Selected linkDistribution grids, mini-grids and interconnectors and AC transmission
Monthly changes 0.11 little or none correlation 12-month changes 0.69 moderate correlation Last 5 years 0.06 monthly changes Lead or lag +3 mo AC transmission tends to lead by 3 months (r 0.32) Price function, Jan 2006 to Jul 2026 Distribution grids, mini-grids and interconnectors ≈ 1.94 × (AC transmission)0.79 R² 0.94 On this fit, a 10% higher AC transmission price goes with a 7.8% higher distribution grids, mini-grids and interconnectors price over the long run. Units: index (BLS base period =100) and index (BLS base period =100).Chart: Distribution grids, mini-grids and interconnectors and AC transmission prices rebased to 100 at Jan 2006, log scale
Both prices rebased to 100 at Jan 2006, on a log scale so equal percentage moves look the same size.Chart: Distribution grids, mini-grids and interconnectors price against AC transmission price, monthly, log scales, with fitted line
Each dot is one month; paler dots are older (2006), darker dots recent (2026); the ringed dot is the latest month. The dashed line is the fitted price function. Both axes are logarithmic.Distribution transformers and switchgear come from the same factories as transmission equipment. Monthly moves barely correlate, at 0.11, but yearly moves at 0.69, with the transformer index leading the switchgear index by about three months.
little or none co-movement month to month · 247 months Show chartsInverters, transformers and smart switching devices are installed together in distribution upgrades. The indices share the grid spending cycle, so yearly moves correlate at 0.70, though monthly changes barely relate, at 0.10, because list prices are revised infrequently.
little or none co-movement month to month · 249 months Show chartsSwitchgear busbars and distribution cables use copper. Switchgear prices are revised infrequently and include much labour and electronics, so the index shows almost no monthly link to copper, correlating at 0.04, which shows how weakly metal costs pass through.
little or none co-movement month to month · 249 months Show chartsSwitchgear cabinets, pole hardware and transformer tanks use sheet steel. The switchgear index shows little relation to steel prices, with yearly moves correlating at 0.12, since steel is a small cost share in finished switchgear.
little or none co-movement month to month · 249 months Show chartsMedium and high-voltage switchgear often uses sulphur hexafluoride, a fluorinated gas, for insulation. Rules phasing it out because of its warming effect push buyers to alternatives. The fluorinated gases proxy shows only a weak yearly link, at 0.32.
little or none co-movement month to month · 207 months Show chartsRooftop and community solar feeds power back into local networks, forcing upgrades to transformers and protection. Growth in solar, along with electric vehicle charging, is a major reason distribution spending has risen in India and elsewhere.
Not enough overlapping price history to measure.How to read these numbers
Correlation of monthly changes (the number in the coloured pill) compares how much each price moved, month by month, since 2006 or the first month both series exist. It runs from −1 to +1: near +1 the two usually rise and fall in the same months, near 0 there is no link, and a negative number means they tend to move in opposite directions. Above 0.7 is strong, 0.4 to 0.7 moderate, 0.2 to 0.4 weak.
12-month changes compare year-on-year moves, which shows whether two prices share the same cycles even when the month-to-month noise differs.
Price function is a straight-line fit of the two prices on logarithmic scales: price ≈ k × (partner price)β. β is how much this price moves, in per cent, for a 1% move in the partner over the whole period, and R² is the share of the variation the fit explains. Two prices that both drift up with inflation can fit well without any real link, so read it together with the monthly correlation.
Lead or lag checks whether the monthly correlation is clearly higher when one price is shifted by 1 to 6 months.
Correlation is not cause. The reasons on each card explain the economic link; the numbers show how strongly it has shown up in prices. Proxy series are US producer price indexes or related prices and can blur the real link.
Data: World Bank Commodity Price Data (Pink Sheet), October 2026; US Bureau of Labor Statistics producer price indexes, IMF primary commodity prices and US EIA prices via FRED, Federal Reserve Bank of St. Louis, retrieved November 2026. Calculations by this site.