Selection of Transformer Rating Life cycle cost analysis approach ‘By Vijay Barve, Senior General Manager, Electrical, and Milind Aher, Senior Manager, Electrical, Tata Consulting Engineers Limited transformer is a unique equip- ment, where efficiency improves with decreased loading, up to a certain loading. This is because the load losses in a transformer vary as a square of the load current. However, this will hold good only up to a certain loading, This is the loading where iron losses become equal to copper losses. ‘The case study below is based on this principle. Case study A. Considerations for analysis 1) The life of a transformer is considered as 25 years [1] 2) The losses as per IS 1180 are consid- ered for loss cost calculations (for energy efficiency Level 1). The same are calculated as below: i, L.6MVA—Total loss at 100 per cent Toad = 14.51 KW [21 ii, Total loss at 50 per cent load = 4.84 KW 22). iii, Sample calculation for no load loss and full load loss calculations for 1.6 MVA transformer P raai = P'No load + (load percent- age/100)2 x P load (31 Calculated no load loss - 1.61 kW Calculated full load loss ~ 12.9 kW Similarly, for a2 MVA transformer, Calculated no load loss ~ 1.65 kW Calculated full load loss ~ 16.62 kW 3) Transformer running costs (loss cost) are calculated for three shifts working, considering 350 days of yearly opera- tion and eight working hours per shift. 4)For the first year of operation, the per- unit cost is considered as Rs 10 per kWh. Increase in utility company tariff is considered @ 5 per cent per annum. over the next 25 years. 5)Payback period is calculated with interest loading on savings in capex/ opex and it will vary based on: i, Hours of operation ii, Actual loading ili, Per unit (kWh) power cost iv, Interest rate. 6)For an option with a higher rating of transformer, as a differential cost in initial investment, only the increased cost of a higher rating transformer is considered. The cost towards its 415 V power control centre incomer, associ- ated bus duct and outgoing feeders will remain unchanged since the load to be distributed remains the same in any of the options. ‘7)Load cycle for 1.5 MVA demand over a span of 24 hours is considered as mentioned in Table 1. MDG) 40 50 60 70 90 100 Workhows 6 3 4 8 2 1 Total hours 24 8)Operations and maintenance costs are not considered in the analysis since they are considered to be almost the same for both the options. 8)Life cycle cost comprises the initial investment and the running cost due to energy losses in the transformer. ‘analysis The transformer sizing is analysed con- sidering the following configurations: 1) Option 1 ~ 1x1.6 MVA, 33/0.415 kV 2) Option 2 ~ 1x2 MVA, 33/0.415 kV Option 1 ~ For a demand variation between 40 per cent and 100 per cent during a 24-hour cycle, the loading on the transformer will vary from 38 per cent to 94 per cent and, according to the loading, the load losses will also vary. A sample calculation of the life cycle cost is as follows: Step 1: Calculations of initial investment Cost of 1.6 MVA transformer = Rs 2.31 million ‘Total cost of initial investment = Rs 2.31 million ® Step 2: Calculations of running costs Step 2a: Calculation of the percentage loading of a transformer as per the actu- al demand is as mentioned in Table 2. 4 MD%) 4080-60 70 9 100 Demand 0.60 075 090 1.05 1.95 1.50 during these working hours (MVA) %eloading of 98 47 56 66 84 94 transformer (%) Step 2b: The losses for different per- centage loading of transformers are as mentioned in Table 3. Step 2c: Sample calculation for annual loss cost for 56 per cent loading of trans- formers: Loss cost = Total losses for 56 per cent loading x Annual working hours for 56 per cent loading x Power tariff rate. Equation 1 Loss cost for the first year = 5.69 x (4.xUR) ‘6 loading of transformer No load losses (kW) Full load losses (KW) Tota losses (et) BF 8H ae ‘loading of transformer Corresponding loss cost for 25 years (Rs milion) ‘otal loss cost for 25 years (Rs milion) ter ter tet 161 161 161 181 283 408 556 918 1134 342 444 569 7.17 1079 1295 SB ¢ 6 6 Mw 343 222 380 957 960 246 24.80 aE Gost (Rs milion) Option + Option 2 (case) Difference Capital cost 2310 2.480 0.175 ‘Operational oss cos for 25 years (Rs milion) 24.806 2747 +.059 Lie cycle cost 27416 24.252 350) x 10 = Rs 79,000 Loss cost for the second year = 5.69 x (4x 350) x 10.5 = Rs 84,000 So, considering a 5 per cent increase in tariff rate per year, for a period of 25 years, the loss cost for the 25th year = 5.69 x (4x 350) x 32.3 = Rs 256,000. ‘Total loss cost for 25 years =Rs 3.8 million. Similar to Equation 1, the total loss cost for the first year = © (Total losses for (88% /47% /56% /66%/84%/94%) loading x Annual working hours ((6/3/4/8/2/1) x 350] x Power tariff rate for the first year} = Rs 520,000, Based on these calculations, the sum- mary of the annual loss cost for Option 1 is mentioned in Table 4. Step 3: Calculations of life cycle cost Life cycle cost = Cost of initial invest- ment + load loss cost = Rs 2.31 million + 248 million = Rs 27.11 million Option 2 ‘Similar working is carried out for 2 MVA transformers. Table 6: Year-wise cash flow scenario (Rs million) Year Losscost Loss.cost Difference Cumulative Cumulative savings for of 1.6MVA of 2MVA savings in 1.6 MVA, considering trafo. trafo. operational expenses initial savings of for 2 MVA Rs 0.175 milion 1 0.520 0.456 0.064 0.064 0.189 2 0546 0478 0.067 0137 0.204 3 0573 502 oo7t 0218 022 4 0.602 0527 0.074 oat 0.238 1 1 1 1 1 1 1 1 1 1 i 1 2% 1676 147 0.207 7398 1.198 "Note: Figures in bold indicate @ payback period of 35 years, where opex savings and the correspond ing interest is > savings in capex and the associated interest Comparison of Options I and 2 A comparison of Options 1 and 2 is indi- cated in Table 5. ‘The life cycle cost mentioned in Table 5 is without interest rate considerations on initial savings in the capital cost as ‘well as without any interest loading on the loss cost savings (due to opting for higher size, that is, A2 MVA transformer instead of a 1.6 MVA transformer). Calculation with interest loading Calculations for total savings in the tial investment for Option 1: Savings = P x (1 + R/100)N Where, P = Principal amount (savings of Rs 175,000) R = Rate of interest @ 8 per cent per annum N=No. of years = 25 years Savings = Rs 1.198 million Calculations for total savings in the loss cost for Option 2 Savings at the end of the first year = Loss cost of 1.6 MVA - loss cost of 2.0 MVA = Rs 520,000 — Rs 456,000 = Rs 64,000 Savings at the end of the second year = (Loss cost of 1.6 MVA —loss cost of 2.0 ‘MVA) + Interest on the first year’s savings {546,000 — 478,000) + (64,000 x 1.08) = Rs 137,000 On a similar basis, the year-wise cash flow scenario, considering interest com- ponents is mentioned in Table 6. At the end of the 25th year, there will be net savings of Rs 6.2 million (7.398 - 1.198 = 6.20). Conclusion If the transformer size calculated for a ‘maximum demand (MD) of 1.5 MVA is 1.6 MVA, on a life cycle cost analysis basis, a2 MVA transformer will be advan- tageous. The payback period will be 3.5 years. The analysis will not be applicable for a group of transformers selected on the redundancy philosophy. The accura- cy in the load estimation and load patt- em will play a key role in the analysi