Green engine boosts transformer manufacturing in Nanjing

An aerial view of China Electric Transformer's low-carbon manufacturing plant. [Photo provided to chinadaily.com.cn]

Jiangsu province's first Time-of-Use Electricity-Carbon Response Loan has been launched by State Grid Nanjing Power Supply Company, together with the State Grid Electric Power Research Institute and other partners, on Aug 25.

As a pilot enterprise, China Electric Transformer achieved carbon reductions and cost savings through precise carbon accounting and power optimization, qualifying for preferential loan rates linked to its emissions reductions.

Traditional power-related carbon accounting relies on annual average carbon factors, failing to reflect emission differences across different times and regions. At the end of 2025, State Grid Jiangsu Electric Power launched the system's first platform for time-of-use and zonal electricity carbon factors. Certified by SGS, it supports hourly online calculation of carbon factors at the provincial, municipal and district levels.

With this more precise carbon measurement tool, the Nanjing power team was able to tailor low-carbon plans for local firms to cut emissions without disrupting production. It monitored hourly carbon data for enterprises in the 45 Jiangning Development Zone and unified regional accounting standards. In July, the method was included in Nanjing's 15th Five-Year Plan (2026-30).

The loan's core innovation is the integration of time-of-use and zonal carbon factors into green credit pricing for the first time, with greater carbon reduction bringing more favorable interest rates. China Electric Transformer cut power costs by roughly 30 percent while lowering emissions and secured a 10-million-yuan ($1.49 million) preferential credit line, with 2 million yuan disbursed upfront. Rates adjust dynamically, with discounts of up to 20 basis points below the benchmark.

China Electric Transformer's products are exported to Germany, Indonesia, the Philippines and other markets. Recently, the company won several major energy storage orders from the Middle East. The green loan will fund production, while carbon data will support its export business.

This model benefits all parties: enterprises can turn emissions reductions into cheaper financing, banks gain reliable carbon data for credit pricing, and grid companies can explore a new model combining power data and green finance.

This year, State Grid Jiangsu launched its 2026 "Electric Warm Current" 10-Action Plan to expand carbon efficiency services. The pilot creates a replicable "Nanjing Model" for carbon reduction, cost savings, and financing optimization. By integrating power data with green finance, State Grid Nanjing is supporting the low-carbon development of transformer manufacturing.