Energy Efficient Transformers and Reactors : Some incentive models and case studies to show the long term profitability of such designs

• During the coming decades energy efficiency will be a critical factor in reducing carbon emissions and fighting global warming. The power generation industry and transmission and distribution industries (T&D) contribute to a large part of energy losses in the society. The losses in T&D systems alone are total 10 % of a global average of the T&D energy transferred. One-third of these T&D losses have their origin in transformers and shunt reactors.This report emphasizes the need to bring in appropriate financial incentives and directives to utilities, in order to encourage investment in energy efficient electrical power systems. A critical financial parameter is the internal interest rate. In some countries there are directives from the authorities that internalinterest rates shall be 5 %. If this is to be applied together with the current prevailing electricityprices in Europe, capitalized cost of total transformer losses should increase by 2-3times of the average value used in the European market today. It isshown that the capitalized cost of losses may vary from 8,000 to 17,000 €/kW today or even higherin the future.This paper highlights cases where low and high capitalized costs of losses are used and the implications for cost related factors of transformer and shunt reactor are analyzed. It isshown that the transformer losses and total ownership cost (TOC) can be substantially reduced with an increase in price(first cost) of the transformers or shunt reactors. With increased value of losses, accuracy of loss measurement will play a much more important business role and require action to improve International Standards. New energy efficientsolutions to combat network losses will require further research and development. Different focus and strategies regarding interest rates and electricityprices in transmission companies lead to very different investment decisions. Without clear regulations promoting reductions in power loss, there might notbe enough incentive for more aggressive innovation in the field of transformer and electrical system technology and efficiency.

Ämnesord

SAMHÄLLSVETENSKAP  -- Ekonomi och näringsliv (hsv//swe)

SOCIAL SCIENCES  -- Economics and Business (hsv//eng)

Nyckelord

Energy - efficient

low - loss transformers and reactors

total ownershi p cost

loss evaluations

T&D investment incentive model

loss measurement accuracy

T&D market regulation

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