Energy efficient transformer selection Implementing life cycle costs and environmental externalities

Goal of this article is to encourage electric utilities and potential investors to purchase and install high-efficiency distribution transformers where they are cost-effective. This paper proposes a methodology that implements the complex economic analyses needed to accurately determine the emission- reduction potential of high-efficiency distribution transformers. This methodology properly introduces the environmental cost into the life cycle cost (total owning cost) calculations implemented by electric utilities, and its results are compared to the classical total owning cost (without environmental cost), indicating the importance of environmental aspects of transformer economy evaluation, which may affect significantly the currently-employed transformer purchasing policy in the near future. Moreover, a sensitivity analysis of the various factors involved in the transformer life cycle cost is implemented, factors such as the transformer loading profile, the specific characteristics of the network where the transformer is installed and the uncertainty of the environmental cost impact on the final energy cost.