Material Insights · Understanding the Material World

Generators and alternators and Transformers and power electronics

Energy flows from generators and alternators to transformers and power electronics; their prices have moved together.

Generators and alternators (energy) and Transformers and power electronics (energy): 2 relationships.

How they are linked

1. Energy flow

Physical flow · 10% of flow · Generators and alternators → Transformers and power electronics

Variable-speed generators need converters to match grid frequency.

  • 10% of Generators and alternators's energy goes this way

2. Price link: grid connection

Cost and price · Strong · Both ways

Generator output passes through transformers and converters to reach the grid, and both are ordered for the same power projects. Monthly moves correlate at 0.26 and yearly at 0.77, a common driver from grid investment and electrical equipment costs.

  • 0.26 monthly change correlation
  • 0.77 12-month change correlation
  • 0.67 fitted elasticity

Built from the site data on production routes, energy flows, industry value chains, input-output tables and prices.