How I Met Your Supplier: Strategic Partnerships in the Power Transformer Market : A Case Study of a Large Utility Company

Sammanfattning

The global shift towards electrification has placed unprecedented pressure on critical energy infrastructure, in particular large power transformers (LPTs), which are essential for voltage regulation and grid stability. As demand continues to outpace supply, the LPT market has become increasingly constrained, creating procurement challenges for utility companies. This is particularly pressing in the hydropower sector, where aging assets require timely and reliable transformer replacements. Despite the criticality of LPTs, there is limited scholarly insight into how buyer-supplier collaboration can mitigate these problems. As such, this study investigates strategic partnerships as a potential approach to increase procurement resilience in a high-demand, low-supply market. Through a qualitative case study of a major Nordic utility, informed by interviews and observations, the study identifies key external, internal, and inter-organizational aspects to take into account when considering strategic partnerships. The findings highlight external market aspects such as supply chain disruptions and skills shortages, internal aspects including partnership support and partnership champions, and inter-organizational aspectssuch as trust building and information sharing. This contributes practical insights for decision-makers and addresses an identified gap in the academic literature on strategic procurement in the energy industry.