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© ABB| Slide 1
Transformer EfficiencyAn opportunity for sustainability
Kai Pollari, March 2016
April 6, 2016
© ABB| Slide 2
Tackling society’s challenges on path to low-carbon eraABB helping customers do more using less
April 6, 2016
0
5
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15
20
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30
35
40
2011 2035Electricity demand is calculated as the total gross electricitygenerated less own use in the production of electricity andtransmission, and distribution losses.
Source: IEA, World Energy Outlook 2013
Rise in electricity demand by 2035(under current policies)
In thousand Terawatt-hours (TWh)
+92%
ABB power and automationsolutions are:
§ Meeting rising demand for electricity§ Increasing energy efficiency and reducing
CO2 emissions§ Improving productivity to raise
competitiveness of businessesand utilities
© ABB| Slide 3
Leading the transition to digital grid
April 6, 2016
Big shift in the electrical value chainNew gridTraditional 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| Slide 4
Available technology can significantly increase efficiency
April 6, 2016
Enormous potential for reducing losses along the energychain
© ABB| Slide 5
ABB Transformers
April 6, 2016
Overview of the strategy with innovation as a key pillar
ABB Transformers address emerging market needs of modern's power gridABB Transformers address emerging market needs of modern's power grid
§ High efficient transformers§ Total cost of ownership
method
§ Proven robust design§ Low maintenance
requirements
§ Manufacturing 4.0
Energy efficiency High quality & reliability Industrial productivity
§ Pioneer spirit, highexpertise & advanced R&D
UHVAC & DC
§ Line voltage regulators§ Booster transformers
Renewables
§ On-line monitoring§ Multiple intelligent
electronic devices
Smart technologies
© ABB| Slide 6
Transformer EfficiencyImportance of energyefficiency
April 6, 2016
© ABB| Slide 7
Importance of energy efficiency
April 6, 2016
Twin pillars of sustainable energy – untieing the linkbetween growth, energy use and emissions
Meeting the energy challenge requires the world to:
§ Reduce the correlationbetween economic growth
and energy use
§ Reduce the correlationbetween energy use and
emissions
Energy
efficiencyRenewable sources
of energy
© ABB| Slide 8
Importance of energy efficiency
April 6, 2016
Energy efficiency as the key mitigation method againstclimate change
© ABB| Slide 9
Importance of energy efficiency
Source: REN21, 2015
April 6, 2016
Global non-hydro renewables still less than T&D losses
© ABB| Slide 10
Transformer Energy EfficiencyUNEP Emission Gap Report (11/2015)
§ To meet the 2 degree critical limit in global warming requiresglobal 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 andconditional plans of emission cuts 54 Gt CO2 in 2030
§ A gap of 12 Gt CO2 remains – this could be closed through awide portfolio of mitigation measures including
1) energy efficiency & conservation2) renewables & hydro power3) CCS4) nuclear
© ABB| Slide 11
Importance of energy efficiency
April 6, 2016
What is energy efficiency / trafo adapted definition
“Percentage of total energy input to atransformer that is distributed further and not
wasted as useless / harmful heat”
© ABB| Slide 12
Transformer EfficiencyPotential and relevance oftransformer efficiency
April 6, 2016
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Potential and relevance of transformer efficiency
April 6, 2016
Infographics
© ABB22/07/2009 | Slide 14
Potential and relevance of transformer efficiencyHow efficient is your power grid?
Over three percent of generated electrical energy is lost between the generating source andthe end user due to losses in transformers.
Potential and relevance of transformer efficiencyPotential CO² emission reduction
© ABB| Slide 15
The losses in transformers today on theglobal transmission and distribution networkequal approximately 700 TWh.
700 TWh can be converted into potentialreduction of 350 megatons of CarbonDioxide (CO²) per year which is equivalentto
250x Boeing 747-400 jet airlinestraveling around the globe 1,000 times.
Potential and relevance of transformer efficiencyEnergy savings potential
© ABB22/07/2009 | Slide 16
The most efficient
transformers can reduce
losses by up to 60%compared to the less
efficient transformers in use
today.
Potential and relevance of transformer efficiencyEnergy savings potential
© ABB22/07/2009 | Slide 17
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 Kingdomin 2014.
Potential and relevance of transformer efficiencyTotal Cost of Ownership (TCO)
With the TCO method, the added cost to purchase due to higher efficiency and the lifetimesavings in cost of operation due to the reduction of lost energy, can be evaluated:
© ABB22/07/2009 | Slide 18
* based on a typical example case with a 25 MVA transformer
Potential and relevance of transformer efficiencyInvestment in energy efficiency pays back
ABB can provide transformers with the lowest losses by utilizing the best materials availabletoday and by optimizing the design and manufacturing processes.
© ABB22/07/2009 | Slide 19
Financial advantages based on optimized TCO:
For further information consult our new TCO on-line calculator at tcocalculator.abb.com.
© ABB| Slide 20
Potential and relevance of transformer efficiency
April 6, 2016
Estimated value of network losses in 2011 (EIA, IEA)
Network losses USA China EU Japan WorldWholesale price(USD/MWh) 48 55 83 100 63
Generation (TWh) 4100 4491 3215 1031 21081
Network losses (TWh) 255 270 235 48 1788
Wholesale value oflosses (BUSD) 12,2 14,9 19,5 4,8 113,4
Approx. final value oflosses (BUSD) 21,5 22,6 32,3 8,0 186,3
Transformer losses(TWh)
700 *)
Wholesale value oflosses (BUSD) 44,3
Approx. Final value oflosses (BUSD) 72,9
*) ABB estimation
© ABB| Slide 21
Transformer EfficiencyMinimum EfficiencyPerformance Standards(MEPS)
April 6, 2016
© ABB| Slide 22
Minimum Efficiency Performance Standards (MEPS)
April 6, 2016
Why MEPS – the underlying challenge
Technical solutions exist on the market leading toreduced energy consumption of transformers, but the
market penetration of high efficient transformers islower than it could be. (*)
(*) European Commission
© ABB| Slide 23
Minimum Efficiency Performance Standards (MEPS)
April 6, 2016
MEPS programs – current global view
Note: the ambition level and the scope of MEPS in different countries has considerable variations
© ABB| Slide 24
Energy Efficiency
No. of Products
R&DNew Products
Energy labeling (possible)
Regulations and standardisationMinimun Efficiency Standard (MEPS), general principle
MEPS
Take awayproducts with low
efficiency
© ABB| Slide 25
Efficiency Categories
§ “Ultra high”
§ India 5 Star
§ China NX-1 if AM
§ Europe CE mark 2021
§ Very high”
§ Australia Hi efficiency 2010
§ China NX-1 if RGO
§ India 4 Star
§ Vietnam Eco label
§ USA DOE 2016
§ “High”
§ India 3 Star
§ China NX-2
§ USA DOE 2010
§ Europe CE mark 2015
§ “Average”
§ Australia Min efficiency 2010
§ India 2 Star
§ China NX-3
§ Europe CkCo
§ “Low”
§ Australia Min efficiency 2004
§ India 1 Star
§ China S9
Global loss evaluationsEnergy efficiency ranking (DTR)§ Approach
§ Efficiency may be deduced either fromthe loss values or given as an efficiencyfactor
§ For comparing the values we considerefficiency at 50% load
§ Grouping is approximate since everystandard is different and not coordinated
§ Observations§ Category “Ultra High” might mean
amorphous
§ To a limit on total losses or efficiencythere are many combinations of P0, noload losses, and Pk, load losses,possible, meaning more freedom tooptimize, as opposed to fixed losses
§ Note: not all of the categories listed aremandatory to meet
© ABB| Slide 26
Minimum Efficiency Performance Standards (MEPS)
Beginning in 2016, newly amended energy efficiency standards fordistribution transformers
§ Will save up to $12.9 billion in costs to consumers — savingfamilies and businesses money reducing energy consumption
§ The new standards will also save 3.63 quadrillion British thermal unitsof energy for equipment sold over the 30-year period of 2016 to 2045
§ About 264.7 million metric tons of carbon dioxide emissions will beavoided, equivalent to the annual greenhouse gas emissions of about51.75 million automobiles
Calculated annualized national economic value of the benefits:
§ Cost savings of using less energy + Reduction in emissions includingCO2 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
April 6, 2016
DOE calculated benefits and costs for equipment soldfrom 2016-2045
© ABB| Slide 27
CN EE Program - OverviewDT 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.
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
Reference document – ”CNDistribution Transformer 2015-2017EE improvement plan”
Issued by CN Ministry of Industryand Information Technology,AQSIQ & National Developmentand Reform Commission on 10-Aug-2015
Estimated high efficiency DT volume improvement
20172013
6.6% 14%
Distribution network takes more than 65%of total network investment
600,000MVA improvement
© ABB| Slide 28
Minimum Efficiency Performance Standards (MEPS)
April 6, 2016
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 advisedto take account of the effect of minimum efficiencyrequirements on the initial cost of the transformer and toallow for the installation of more efficienttransformers than the regulation requires, wheneverthese are economically justified on a whole life cyclebasis, including an adequate evaluation of lossesreduction.”
© ABB| Slide 29
Minimum Efficiency Performance Standards (MEPS)
§ The new up-coming IEC standard will be the first globalreference 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 calculationof Total Cost of Ownership
§ Future local regulations may use IEC 60076-20 as areference point
§ Scheduled release of the standard is Q3/2016
§ May come first out as a TS (Technical Specification)April 6, 2016
New up-coming international standard to support
© ABB| Slide 30
Transformer EfficiencyTotal Cost of Ownership(TCO) method at glance
April 6, 2016
© ABB| Slide 31
Total Cost of Ownership (TCO) method at glance
April 6, 2016
How much does a transformer really cost?
§ The real cost of a transformer for the owner is the sum of theinitial purchase price (first cost) plus the cost of running it for itsuseful life (typically of 30 - 40 years)
§ Purchase price
§ Cost of Losses
§ No Load Loss
§ Load Loss
§ Commissioning cost
§ Maintenance cost
§ Cost of down-time (reliability)
Life Cycle Cost
Purchasing decisions require the right balance between the initialpurchase cost and the cost of future losses.
A Reduction of energy losses normally leads to a higher initial cost
© ABB| Slide 32
Total Cost of Ownership (TCO) method at glance
April 6, 2016
Total Cost of Ownership (TCO or aka. TOC)
§ Provided that the MEPS (Minimum Efficiency Performance Standard) is fulfilled, use ofproper loss capitalization for purchasing transformers is essential to select a transformerwith the optimal economically justified level of efficiency. The way to consider it is byusing TCO (Total Cost of Ownership) method
Po No Load Losses (NLL)
PcoPower consumption of cooling equipment at noload operation
Pk Load Losses (LL)
PcsPower consumption of cooling equipment atrated power operation
IC Initial Cost
§ The cost of losses comes into effectduring transformer life time; losses costsare therefore converted to the momentof purchase (Net Present Value), byassigning their capitalized values A, B
§ Factors A, B (€/kW) depend ontransformer loading conditions, as wellas cost of capital, energy marketforecasts, expected transformer life
= × × ×1 − 1
1 +
= × ×1 − 1
1 +
= + × + + × ( + − )
© ABB| Slide 33
Total Cost of Ownership (TCO) method at glance
April 6, 2016
Inputs needed for determination of A- and B-factors
§ 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 beconstant, 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
= × ×1 − 1
1 +
= ( × )
= × × ×1 − 1
1 +
=
© ABB| Slide 34
Total Cost of Ownership (TCO) method at glance
April 6, 2016
Basic methods to reduce losses / simplified
§ 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 moreexpensive transformer with possibly a larger footprint
§ A trade off is required between high efficiency (high initial cost) and life cycle costsavings (loss evaluation) when improving transformer efficiency
Ways to Reduce NL Losses Ways to Reduce Load Losses
Use better grade of core material Use copper rather than aluminum(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 a core with larger leg area Use special means and materials inorder to reduce eddy losses
© ABB| Slide 35
Total Cost of Ownership (TCO) method at glance
April 6, 2016
Example / development of core steel grades
0
1
2
3
Iron
loss
W17
/50
(W/k
g)
19901955 1960 19751965 1995 20001970 19851980
Production Start 1953 (cold-rolled)
Production Start 1983 (HI-B “laser”)
Z 0.35mm
Z 0.30mm
ZH 0.30mm
ZH 0.23mm
ZDKH0.23mm
ZDMH0.23mm
2005
Production Start 1967 (HI-B)
Source: NSC
© ABB| Slide 36
§NET ENVIRONMENTAL IMPACT§ It can argued that the upfront environmental cost of improving
efficiency should be taken into account. High efficiencytransformers safe energy & CO2 emissions, but what about theenergy to produce the additional materials to improvetransformer efficiency?
§ Lifecycle assessment demonstrates that over 99% of theenvironmental impact of a distribution transformer can beattributed to its lifetime electricity losses.
§ For example, improving the efficiency of a 1600 kVA transformerwill save 400 tons of CO2 over the equipment's lifetime, whileusing 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 muchlower CO2 emissions at the end of the transformer's lifetime.
April 6, 2016
© ABB| Slide 37
Scenario:§ Low loss requirements / high capitalisation values§ Engineering balances flux density and material qualityIron Losses capitalization effect other than lower losses:
§ Higher overvoltage capabilities to better withstand network voltage andfrequency 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
insulationCopper Losses capitalization effect other than lower losses:
§ Higher reliability during short circuit events due to lower mechanicalstresses
§ Lower winding hot spots for the same cooling, increasing winding insulationlife expectancy
§ Increased overload capability for the same cooling§ Less cooling equipment for the same temperature limits
§ Lower sound level§ Lower Auxiliary losses
Transformer Energy EfficiencyPotential benefits on power transformer performance
Month DD, Year
© ABB| Slide 38
Transformer EfficiencyABB TCO tool
April 6, 2016
© ABB| Slide 39
TCO Tool / A Quick Guide
© ABB| Slide 40
ABB TCO tool
April 6, 2016
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 lossvalues 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 thenumber of trees needed to compensate the extra emissionscaused by the trafo with lower efficiency
Calculation formulas are based on IEC 60076-20 (currentdraft) on applicable parts
© ABB| Slide 41
ABB TCO toolInterface 1
i-buttons forhelp
© ABB| Slide 42
ABB TCO toolInterface 2
i-buttons forhelp
© ABB| Slide 43
ABB TCO toolInterface / comparison and results
Peak efficiency index(IEC) is the highestefficiency that thetransformer can reachat an optima loadingpoint. It is calculatedbased on the IECdefinition of efficiency.
Total cost ofownership is the sumof the initial purchasecost and the netpresent value of thecost of losses duringthe lifetime. In thiscalculation, differencesin other lifecycle costcomponents such asinstallation,maintenance, possibleout-time anddecommission costsare not included.
Total lifetime savingsduring the lifetime ofthe transformer inselected currency whencomparing the “Lowesttotal cost” and thetransformer x.
Payback time in yearsfor the marginalinvestment on thehigher efficiency whencomparing the “Lowesttotal cost” and thetransformer x. Simplepayback calculationmethod.
Energy savings peryear and total – Theamount of energysaved when selectingthe “Lowest total cost”instead of transformerx.
CO2 emissionreduction per year –The amount of CO2emission avoided intons when selecting the“Lowest total cost”instead of transformerx. Calculated using theglobal average CO2emission of 489 g perkWh generated.
CO2 absorptioncapability of trees –The number of treesneeded to offset thehigher CO2 emissionscaused by atransformer with lowerefficiency based on theaverage annualabsorption capability of22 kg of CO2 by asingle tree.
© ABB| Slide 44
ConclusionThe essence of TCO method
§ The purchase decision of a transformers should bebased on the optimum design and taking in account
the lifecycle cost
§ The use of TCO method allows the manufacturers totailor the design to the unique situation of each
customer, and allows the customer to evaluate multipledesigns in order to find out the optimal solution for his
need
§ With the TCO method the sum of the cost ofpurchase and the lifetime cost of operation due to the
lost energy can be evaluated
§ The purchase decision of a transformers should bebased on the optimum design and taking in account
the lifecycle cost
§ The use of TCO method allows the manufacturers totailor the design to the unique situation of each
customer, and allows the customer to evaluate multipledesigns in order to find out the optimal solution for his
need
§ With the TCO method the sum of the cost ofpurchase and the lifetime cost of operation due to the
lost energy can be evaluated
© ABB| Slide 45
Transformer EfficiencyUnited for Efficiency (U4E)
April 6, 2016
© ABB| Slide 46
United for Efficiency (U4E)ABB joined United Nations Environment Program (UNEP)
The opportunities for savings are vast:
• Transformers account for about 3 percent ofglobal electricity consumption
• Their number in emerging markets is set toalmost triple by 2030
• The most efficient transformers consume 80percent less electricity than the least efficient
d
ABB is participating the United Nations initiative, providingexpertise 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
© ABB| Slide 47
United for Efficiency (U4E)UNEP project
© ABB| Slide 48
United for Efficiency (U4E)Chile
© ABB| Slide 49
United for Efficiency (U4E)Chile
© ABB| Slide 50
Transformer EfficiencyConclusion
April 6, 2016
© ABB| Slide 51
Transformer Energy EfficiencyABB Transformers Energy Efficiency Message
Virtually all the generated electrical energy has to go throughseveral transformers before it can be used.
§ ABB endorses Minimum Efficiency Performance Standards(MEPS) as a policy to prevent transformers with lowerefficiencies 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 higherefficiency performance than MEPS requires today
§ ABB, as the market leader in the industry, and as a sociallyresponsible company, actively participates in the globalstandardization committees
© ABB Group June 5, 2015 | Slide 3
© ABB| Slide 52
Power and productivity for a better worldABB’s vision
Update
A leader in addressing powerinfrastructure and control needsfor utilities, industry and transport& infrastructure
A leader in operational asseteffectiveness – uptime, speed,yield – and efficiency
Contributing to decoupling growth from environmental impact
§ Less energy per unit GDP§ Less pollution per unit energy
© ABB| Slide 53
ABB Transformer Energy Efficiency...for a better tomorrow
© ABB| Slide 54
ABB TCO tool & information on transformer efficiency
April 6, 2016
Free-access from transformer EE portal in abb.com
