Promoting Energy Efficient Transformers In Liberalized Markets M. Dave IEO Transformatoren The Netherlands 24 November 2000

INTRODUCTION b Transformer most important link in the power system b Energy saving potential b Conventional method to determine cost effectiveness b Total Owning Cost (TOC) concept b Reduction in losses leads to higher capital cost

TRADITIONAL CONCEPT (1) b Traditional utility markets convinced about significance of energy efficient transformers b The Netherlands, example for reduction in losses in last decade

REDUCTION IN LOSS LEVELS IN THE NETHERLANDS IN WATTS

TRADITONAL CONCEPT (2) b Comparison of Netherlands losses with HD.428 C-C’ level b Commitment for energy efficient transformers

COMPARISON OF LOSS LEVELS IN WATTS- NL vs. HD.428 C-C’

UTILITIES’ DILEMMA b Forces of de-regulation, liberalization and privatization b Globalization of business b Increased threats on international level b Conflicting goals

UTILITIES’ DILEMMA b Uncertainty of future b Falling price levels b Demand to curtail capital expenditure

UTILITIES’ REACTION b Wait and watch policy b Compromise on energy efficiency b Staying afloat & enhance shareholder value b Increased emphasis on financial performance

UTILITIES’ REACTION b Control in the hands of commercial “Whiz kids” b Shorts term objectives b KISS (Keep it Small & Simple - new philosophy) b Quick Gain Project b Purchase decision by contractor

MANUFACTURERS’ DILEMMA b Buyers’ market - over capacity b Optimum efficiency levels achieved b Unwise to embark on substantial investment for new technology b Forced to toe buyers’ line

DIFFICULT QUESTIONS b Consequence of minimal efficiency standard b Manufacturers’ response to new utility policy b Should R&D continue for improving transformer efficiencies b New technology or regulatory mandates

SUGGESTIONS b Highlight environmental benefits b Designate emission reduction potential b Abandon short sighted approach for better future

SOLUTIONS b Evolve Energy Star Transformer Program b Co-ordinated efforts by authorities, regulator & manufacturers b Follow Optimal Transformer Sizing Model b Point out other advantages like less noise pollution, compact dimensions M.DaveIEO Transformatoren, NL