TOC, or total ownership cost, is the best methodology for customers to use when buying transformers, because it can convert the cost of future losses and/or CO2 emission penalty costs into a net present value based upon their specific cost drivers, ie, generation costs, interest rates, etc. In this way, the customer can find the right balance between purchase price and the cost of future losses, calculated on their individual financial costs ($/per kWh) and payback targets. On top of this, we also have the new EU ecodesign directive for transformers to consider. It provides the maximum losses for distribution and dry-type transformers; for power transformers, it provides a peak efficiency index (PEI), which outlines minimum efficiency levels.
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