Transformer Efficiency An Opportunity For Sustainability

Kai Pollari, March 2016
Transformer Efficiency
An opportunity for sustainability
© ABB
April 6, 2016 | Slide 1
Tackling society’s challenges on path to low-carbon era
ABB helping customers do more using less
Rise in electricity demand by 2035 ABB power and automation

(under current policies) solutions are:
Source: IEA, World Energy Outlook 2013
In thousand Terawatt-hours (TWh)

§ Meeting rising demand for electricity
40 § Increasing energy efficiency and reducing
CO2 emissions
35
§ Improving productivity to raise
30 competitiveness of businesses
25 +92% and utilities
20
15
10
0
2011 2035
Electricity demand is calculated as the total gross electricity
generated less own use in the production of electricity and
transmission, and distribution losses.
© ABB
Leading the transition to digital grid
Big shift in the electrical value chain
Traditional grid New grid
§ Vision of new grid (smart grid):

§ More reliable, flexible, secure, monitored
§ Lower power consumption / more efficient
§ Greater use of renewable energy
§ Transformation of grid to take place over several decades
© ABB
Available technology can significantly increase efficiency
Enormous potential for reducing losses along the energy
chain
© ABB
ABB Transformers
Overview of the strategy with innovation as a key pillar
ABB Transformers address emerging market needs of modern's power grid
Energy efficiency High quality & reliability Industrial productivity
§ High efficient transformers § Proven robust design § Manufacturing 4.0

§ Total cost of ownership § Low maintenance
method requirements
UHVAC & DC Renewables Smart technologies
§ Pioneer spirit, high § Line voltage regulators § On-line monitoring

expertise & advanced R&D § Booster transformers § Multiple intelligent
electronic devices
© ABB
Importance of energy
efficiency
© ABB
Importance of energy efficiency
Twin pillars of sustainable energy – untieing the link
between growth, energy use and emissions
Meeting the energy challenge requires the world to:
§Reduce the correlation § Reduce the correlation

between economic growth between energy use and
and energy use emissions
Energy Renewable sources

efficiency of energy
© ABB
Energy efficiency as the key mitigation method against
climate change
© ABB
Global non-hydro renewables still less than T&D losses
Source: REN21, 2015
© ABB
Transformer Energy Efficiency
UNEP Emission Gap Report (11/2015)
§ To meet the 2 degree critical limit in global warming requires

global emissions not to exceed 42 Gt CO2 in 2030
§ Baseline scenario is 65 Gt CO2 in 2030
§ Current policy trajectory 60 Gt CO2 in 2030
§ Trajectory including a full implemention of unconditional and
conditional plans of emission cuts 54 Gt CO2 in 2030
§ A gap of 12 Gt CO2 remains – this could be closed through a

wide portfolio of mitigation measures including
1) energy efficiency & conservation
2) renewables & hydro power
3) CCS
4) nuclear
© ABB
| Slide 10
What is energy efficiency / trafo adapted definition
“Percentage of total energy input to a

transformer that is distributed further and not
wasted as useless / harmful heat”
© ABB
Potential and relevance of
transformer efficiency
© ABB
Potential and relevance of transformer efficiency
Infographics
© ABB
How efficient is your power grid?
Over three percent of generated electrical energy is lost between the generating source and
the end user due to losses in transformers.
© ABB
22/07/2009 | Slide 14
Potential CO² emission reduction
The losses in transformers today on the

global transmission and distribution network
equal approximately 700 TWh.
700 TWh can be converted into potential
reduction of 350 megatons of Carbon
Dioxide (CO²) per year which is equivalent
to
250x Boeing 747-400 jet airlines

traveling around the globe 1,000 times.
© ABB
| Slide 15
Energy savings potential
The most efficient

transformers can reduce
losses by up to 60%
compared to the less

efficient transformers in use
today.
© ABB
22/07/2009 | Slide 16
Energy savings potential
By choosing energy efficient transformers,

society could save one percent of the
electricity generated, which corresponds to
350 TWh by the year 2035.
350 TWh equals the total electricity
consumption of United Kingdom

in 2014.
© ABB
22/07/2009 | Slide 17
Total Cost of Ownership (TCO)
With the TCO method, the added cost to purchase due to higher efficiency and the lifetime
savings in cost of operation due to the reduction of lost energy, can be evaluated:
* based on a typical example case with a 25 MVA transformer

© ABB
22/07/2009 | Slide 18
Investment in energy efficiency pays back
ABB can provide transformers with the lowest losses by utilizing the best materials available
today and by optimizing the design and manufacturing processes.
Financial advantages based on optimized TCO:
For further information consult our new TCO on-line calculator at tcocalculator.abb.com.
© ABB
22/07/2009 | Slide 19
Estimated value of network losses in 2011 (EIA, IEA)
Network losses USA China EU Japan World

Wholesale price
48 55 83 100 63
(USD/MWh)
Generation (TWh) 4100 4491 3215 1031 21081
Network losses (TWh) 255 270 235 48 1788
Wholesale value of
12,2 14,9 19,5 4,8 113,4
losses (BUSD)
Approx. final value of
21,5 22,6 32,3 8,0 186,3
losses (BUSD)
Transformer losses 700 *)

(TWh)
Wholesale value of
44,3
losses (BUSD)
Approx. Final value of
72,9
losses (BUSD)
© ABB
*) ABB estimation
Minimum Efficiency
Performance Standards
(MEPS)
© ABB
Minimum Efficiency Performance Standards (MEPS)
Why MEPS – the underlying challenge
Technical solutions exist on the market leading to

reduced energy consumption of transformers, but the
market penetration of high efficient transformers is
lower than it could be. (*)
(*) European Commission
© ABB
MEPS programs – current global view
Note: the ambition level and the scope of MEPS in different countries has considerable variations
© ABB
Regulations and standardisation
Minimun Efficiency Standard (MEPS), general principle
No. of Products
Energy labeling (possible)
Take away
products with low
efficiency
R&D
New Products
MEPS Energy Efficiency

© ABB
| Slide 24
Efficiency Categories
Global loss evaluations
Energy efficiency ranking (DTR)
§ “Ultra high”
§ India 5 Star
§ China NX-1 if AM
§ Approach § Europe CE mark 2021
§ Efficiency may be deduced either from § Very high”
the loss values or given as an efficiency § Australia Hi efficiency 2010
factor § China NX-1 if RGO
§ India 4 Star
§ For comparing the values we consider § Vietnam Eco label
efficiency at 50% load § USA DOE 2016
§ Grouping is approximate since every § “High”
standard is different and not coordinated § India 3 Star
§ China NX-2
§ Observations § USA DOE 2010
§ Category “Ultra High” might mean § Europe CE mark 2015
amorphous § “Average”
§ Australia Min efficiency 2010
§ To a limit on total losses or efficiency § India 2 Star

there are many combinations of P0, no § China NX-3
load losses, and Pk, load losses, § Europe CkCo
possible, meaning more freedom to § “Low”
optimize, as opposed to fixed losses § Australia Min efficiency 2004
§ Note: not all of the categories listed are § India 1 Star
mandatory to meet § China S9
© ABB
| Slide 25
DOE calculated benefits and costs for equipment sold
from 2016-2045
Beginning in 2016, newly amended energy efficiency standards for
distribution transformers
§ Will save up to $12.9 billion in costs to consumers — saving
families and businesses money reducing energy consumption
§ The new standards will also save 3.63 quadrillion British thermal units
of energy for equipment sold over the 30-year period of 2016 to 2045
§ About 264.7 million metric tons of carbon dioxide emissions will be
avoided, equivalent to the annual greenhouse gas emissions of about
51.75 million automobiles
Calculated annualized national economic value of the benefits:
§ Cost savings of using less energy + Reduction in emissions including
CO2 minus the increase in costs of equipment and installation
§ Total benefits $827 million to $1.233 billion per year
§ Incremental equipment costs of $266 to $282 million per year
§ Results Net benefit of $561 to $950 million per year for the society
§ DOE found the benefits outweigh the burdens
© ABB
CN EE Program - Overview
DT 2015-2017 EE improvement plan
Objective:
§ To 2017, improve high efficiency DT share to 14% in networks. Annual new
installation high efficiency DT takes 70%.
§ The cumulative high efficiency DT is 600,000MVA, to save power energy
9.4 billion kwh.
Estimated high efficiency DT volume improvement

600,000MVA improvement
Reference document – ”CN 6.6% 14%

Distribution Transformer 2015-2017
EE improvement plan” Distribution network takes more than 65%
2013 of total network investment 2017
Issued by CN Ministry of Industry
and Information Technology,
AQSIQ & National Development
and Reform Commission on 10-
Aug-2015
Tasks:
§ Expand proportion of high efficiency DT and replace non-efficient DT from
networks
§ Enhance high efficiency DT manufacturing capacity
§ Improve high efficiency DT supporting system construction
§ Practice high efficiency DT demonstration base construction
© ABB
| Slide 27
Total Cost of Ownership (TCO) vs. MEPS
TCO strongly recommended by EC

European Commission (in transformer regulation):
“To allow an effective implementation of the regulation,

National Regulating Authorities are strongly advised
to take account of the effect of minimum efficiency
requirements on the initial cost of the transformer and to
allow for the installation of more efficient
transformers than the regulation requires, whenever
these are economically justified on a whole life cycle
basis, including an adequate evaluation of losses
reduction.”
© ABB
New up-coming international standard to support
§ The new up-coming IEC standard will be the first global

reference point on recommended minimum efficiency levels
§ Will provide two levels of suggested maximum losses /
minimum efficiency
§ Covers also large power transformers up to indefinite rating
§ Will provide a description and a guideline for the calculation
of Total Cost of Ownership
§ Future local regulations may use IEC 60076-20 as a
reference point
§ Scheduled release of the standard is Q3/2016
§ May come first out as a TS (Technical Specification)
© ABB
Total Cost of Ownership
(TCO) method at glance
© ABB
Total Cost of Ownership (TCO) method at glance
How much does a transformer really cost?
§ The real cost of a transformer for the owner is the sum of the
initial purchase price (first cost) plus the cost of running it for its
useful life (typically of 30 - 40 years)
§ Purchase price
§ Cost of Losses
§ No Load Loss
§ Load Loss Life Cycle Cost

§ Commissioning cost
§ Maintenance cost
§ Cost of down-time (reliability)
Purchasing decisions require the right balance between the initial

purchase cost and the cost of future losses.
A Reduction of energy losses normally leads to a higher initial cost
© ABB
Total Cost of Ownership (TCO or aka. TOC)
§ Provided that the MEPS (Minimum Efficiency Performance Standard) is fulfilled, use of
proper loss capitalization for purchasing transformers is essential to select a transformer
with the optimal economically justified level of efficiency. The way to consider it is by
using TCO (Total Cost of Ownership) method
= + × + + ×( + − )
§ The cost of losses comes into effect
during transformer life time; losses costs
Po No Load Losses (NLL)
are therefore converted to the moment Power consumption of cooling equipment at no
of purchase (Net Present Value), by Pco load operation
Pk Load Losses (LL)
assigning their capitalized values A, B Power consumption of cooling equipment at
Pcs rated power operation
IC Initial Cost
§ Factors A, B (€/kW) depend on
1
transformer loading conditions, as well 1−
= × × 1+
as cost of capital, energy market
forecasts, expected transformer life
1
1−
= × × × 1+
© ABB
Inputs needed for determination of A- and B-factors
1 1
1− 1−
= × × 1+ = × × × 1+
( × )
= =
§ t is the operating hours per year (hours)
§ i is the discount rate for the investment (”cost of money”,

”WACC”, in percentage)
§ n is the expected lifetime of the transformer (years)
§ is the cost of energy at the mid-life of the transformer
Note; if annual increase of energy price is assumed to be

constant, can be calculated using C, j & n
§ C is the intitial cost of energy (in currency)
§ j is the annual increase of energy price (in percentage)
§ k is the average loading of the transformer during it´s lifetime

© ABB
Basic methods to reduce losses / simplified
Ways to Reduce NL Losses Ways to Reduce Load Losses

Use copper rather than aluminum
Use better grade of core material
(DTR)
Use thinner core steel laminations Use a conductor with a larger area
Use more turns in the coil Use fewer turns in the coil
Use special means and materials in

Use a core with larger leg area
order to reduce eddy losses
§ Transformer designers can alter the design to provide a solution with reduced no-
load, load losses or both.
§ Improvement in performance and overall economy requires in most cases a more
expensive transformer with possibly a larger footprint
§ A trade off is required between high efficiency (high initial cost) and life cycle cost
savings (loss evaluation) when improving transformer efficiency
© ABB
Example / development of core steel grades
Production Start 1953 (cold-rolled)

Z 0.35mm
3
Iron loss W 17/50 (W/kg)
Production Start 1967 (HI-B)

2
Z 0.30mm
ZH 0.30mm
1
ZH 0.23mm
Production Start 1983 (HI-B “laser”) ZDKH ZDMH
0.23mm 0.23mm
0
1955 1960 1965 1970 1975 1980 1985 1990 1995 2000 2005
Source: NSC
© ABB
§ NET ENVIRONMENTAL IMPACT
§ It can argued that the upfront environmental cost of improving
efficiency should be taken into account. High efficiency
transformers safe energy & CO2 emissions, but what about the
energy to produce the additional materials to improve
transformer efficiency?
§ Lifecycle assessment demonstrates that over 99% of the
environmental impact of a distribution transformer can be
attributed to its lifetime electricity losses.
§ For example, improving the efficiency of a 1600 kVA transformer
will save 400 tons of CO2 over the equipment's lifetime, while
using an extra 700 kg of copper, causing 2 tons of CO2 emissions.
In this case, the environmental payback is a factor 2004.
Moreover, copper & other materials can be recycled with much
lower CO2 emissions at the end of the transformer's lifetime.
© ABB
Potential benefits on power transformer performance
Scenario:
§ Low loss requirements / high capitalisation values
§ Engineering balances flux density and material quality
Iron Losses capitalization effect other than lower losses:

§ Higher overvoltage capabilities to better withstand network voltage and
frequency fluctuations if flux density is lowered in the design
§ Lower sound level
§ Lower hot spot temperature on the core steel, thus reduced ageing of core
insulation
Copper Losses capitalization effect other than lower losses:
§ Higher reliability during short circuit events due to lower mechanical
stresses
§ Lower winding hot spots for the same cooling, increasing winding insulation
life expectancy
§ Increased overload capability for the same cooling
§ Less cooling equipment for the same temperature limits
§ Lower sound level
§ Lower Auxiliary losses
© ABB
Month DD, Year | Slide 37
ABB TCO tool
© ABB
TCO Tool / A Quick Guide
© ABB
| Slide 39
ABB TCO tool
What it does
TCO tool is an universal easy-to-use tool for

1. Determining the transformer loss capitalization values (”A” and
”B” factors)
2. Comparing transformers with different first cost and loss

values from the following aspects
§ Total cost of ownership with payback time on marginal cost
§ Consumption of energy
§ CO2 emission impact (in kg of CO2) with analogue to the

number of trees needed to compensate the extra emissions
caused by the trafo with lower efficiency
Calculation formulas are based on IEC 60076-20 (current

draft) on applicable parts
© ABB
ABB TCO tool
Interface 1
i-buttons for
help
© ABB
| Slide 41
ABB TCO tool
Interface 2
i-buttons for
help
© ABB
| Slide 42
ABB TCO tool
Interface / comparison and results
Peak efficiency index Energy savings per
(IEC) is the highest year and total – The
efficiency that the amount of energy
transformer can reach saved when selecting
at an optima loading the “Lowest total cost”
point. It is calculated instead of transformer
based on the IEC x.
definition of efficiency.
CO2 emission
Total cost of reduction per year –
ownership is the sum The amount of CO2
of the initial purchase emission avoided in
cost and the net tons when selecting the
present value of the “Lowest total cost”
cost of losses during instead of transformer
the lifetime. In this x. Calculated using the
calculation, differences global average CO2
in other lifecycle cost emission of 489 g per
components such as kWh generated.
installation,
maintenance, possible CO2 absorption
out-time and capability of trees –
decommission costs The number of trees
are not included. needed to offset the
higher CO2 emissions
Total lifetime savings caused by a
during the lifetime of transformer with lower
the transformer in efficiency based on the
selected currency when average annual
comparing the “Lowest absorption capability of
total cost” and the 22 kg of CO2 by a
transformer x. single tree.
Payback time in years

for the marginal
investment on the
higher efficiency when
comparing the “Lowest
total cost” and the
transformer x. Simple
payback calculation
method.
© ABB
| Slide 43
Conclusion
The essence of TCO method
§ The purchase decision of a transformers should be

based on the optimum design and taking in account
the lifecycle cost
§ The use of TCO method allows the manufacturers to
tailor the design to the unique situation of each
customer, and allows the customer to evaluate multiple
designs in order to find out the optimal solution for his
need
With the TCO method the sum of the cost of
§
purchase and the lifetime cost of operation due to the
lost energy can be evaluated
© ABB
| Slide 44
United for Efficiency (U4E)
© ABB
ABB joined United Nations Environment Program (UNEP)
d
ABB is participating the United Nations initiative, providing
expertise on energy efficient transformers to help governments
devise policies that accelerate energy savings
ABB will share know-how related to energy efficiency in transformers
ABB will share its experience with current policies, regulations and standards
ABB will advice on potential applications for the best available technologies
The opportunities for savings are vast:
• Transformers account for about 3 percent of

global electricity consumption
• Their number in emerging markets is set to
almost triple by 2030
• The most efficient transformers consume 80

percent less electricity than the least efficient
© ABB
| Slide 46
UNEP project
© ABB
| Slide 47
Chile
© ABB
| Slide 48
Chile
© ABB
| Slide 49
Conclusion
© ABB
ABB Transformers Energy Efficiency Message
Virtually all the generated electrical energy has to go through

several transformers before it can be used.
§ ABB endorses Minimum Efficiency Performance Standards

(MEPS) as a policy to prevent transformers with lower
efficiencies from entering onto the network
§ ABB promotes the use of the Total Cost of Ownership (TCO)

methodology
§ ABB is fully ready today to supply transformers with higher

efficiency performance than MEPS requires today
§ ABB, as the market leader in the industry, and as a socially

responsible company, actively participates in the global
standardization committees
© ABB
| Slide 51
© ABB Group June 5, 2015 | Slide 3
Power and productivity for a better world
ABB’s vision
A leader in addressing power

A leader in operational asset
infrastructure and control needs
effectiveness – uptime, speed,
for utilities, industry and transport
yield – and efficiency
& infrastructure
Update
Contributing to decoupling growth from environmental impact

§ Less energy per unit GDP
§ Less pollution per unit energy
© ABB
| Slide 52
ABB Transformer Energy Efficiency
...for a better tomorrow
© ABB
| Slide 53
ABB TCO tool & information on transformer efficiency
Free-access from transformer EE portal in abb.com
© ABB

Transformer Efficiency An Opportunity For Sustainability

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Kai Pollari, March 2016

Rise in electricity demand by 2035 ABB power and automation

In thousand Terawatt-hours (TWh)

§ Vision of new grid (smart grid):

ABB Transformers address emerging market needs of modern's power grid

Energy efficiency High quality & reliability Industrial productivity

§ High efficient transformers § Proven robust design § Manufacturing 4.0

UHVAC & DC Renewables Smart technologies

§ Pioneer spirit, high § Line voltage regulators § On-line monitoring

Meeting the energy challenge requires the world to:

§Reduce the correlation § Reduce the correlation

Energy Renewable sources

Source: REN21, 2015

§ To meet the 2 degree critical limit in global warming requires

§ A gap of 12 Gt CO2 remains – this could be closed through a

“Percentage of total energy input to a

The losses in transformers today on the

250x Boeing 747-400 jet airlines

The most efficient

compared to the less

By choosing energy efficient transformers,

350 TWh equals the total electricity

consumption of United Kingdom

* based on a typical example case with a 25 MVA transformer

Financial advantages based on optimized TCO:

Network losses USA China EU Japan World

Transformer losses 700 *)

Technical solutions exist on the market leading to

(*) European Commission

MEPS Energy Efficiency

§ Efficiency may be deduced either from § Very high”

the loss values or given as an efficiency § Australia Hi efficiency 2010

factor § China NX-1 if RGO

§ Grouping is approximate since every § “High”

standard is different and not coordinated § India 3 Star

§ Category “Ultra High” might mean § Europe CE mark 2015

§ Australia Min efficiency 2010

§ To a limit on total losses or efficiency § India 2 Star

§ Note: not all of the categories listed are § India 1 Star

mandatory to meet § China S9

Estimated high efficiency DT volume improvement

Reference document – ”CN 6.6% 14%

TCO strongly recommended by EC

“To allow an effective implementation of the regulation,

§ The new up-coming IEC standard will be the first global

§ Load Loss Life Cycle Cost

§ Cost of down-time (reliability)

Purchasing decisions require the right balance between the initial

§ t is the operating hours per year (hours)

§ i is the discount rate for the investment (”cost of money”,

§ is the cost of energy at the mid-life of the transformer

Note; if annual increase of energy price is assumed to be

§ C is the intitial cost of energy (in currency)

§ j is the annual increase of energy price (in percentage)

§ k is the average loading of the transformer during it´s lifetime

Ways to Reduce NL Losses Ways to Reduce Load Losses

Use special means and materials in

Production Start 1953 (cold-rolled)

Production Start 1967 (HI-B)

Iron Losses capitalization effect other than lower losses:

TCO tool is an universal easy-to-use tool for

2. Comparing transformers with different first cost and loss

§ Total cost of ownership with payback time on marginal cost