In general increased efficiency can be measured by knowing the real cost of a transformer.
For the owner this is the sum of the initial purchase price (first cost) plus the cost of running it for its useful life.
Purchase price = Cost of Losses (No Load Losses + Load Losses + Aux Losses) + Commissioning cost + Maintenance cost + Emissions cost (depending on regulations)
Total Ownership Cost (TOC) method takes future operating cost of a unit over its lifetime brought back into net present value, and added to its purchase price.
TOC = Price + [A ($/W) x No-load Loss (W)] + [B ($/W) x Load Loss (W)]
Optimizing a design using A & B factors results in the most cost-effective design over the transformer life cycle, based on customers’ cost of energy and load factors:
• Cost of capital,
• Cost of energy
• Cost of additional capacity – generation, transmission & distribution
• Transformer operating hours per year
• Loading characteristics – peak & load factor
Large and medium power transformers
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