A Quick Guide Total Cost of Ownership calculator tool (ver. 1.1) 4/22/2017 ABB Transformers, 2015 A Quick Guide Total Cost of Ownership calculator tool (ver. 1.1)

TCO Tool / A Quick Guide 4/22/2017 © ABB Group February 6, 2015 | Slide 2

TCO Tool / A Quick Guide Pre-word 1 4/22/2017 Background of TCO and TCO tool The use of Total Cost of Ownership –method (also known as Total Ownership Cost –method) allows manufacturers to tailor the design to the unique economic situation of each transformer user, and allows the user to evaluate multiple designs in order to find out the optimal solution for his need The easy-to-use ABB Transformer TCO Tool supports customers to determine, based on their own situation and future scenario, the right loss capitalisation values to be used in their inquiry to be passed to the manufacturers The tool also helps in comparing different alternative transformer offers, calculates the monetary savings and evaluates the environmental impact and therefore supports the related decision making and increases the awareness Current version 1.1. supports in addition to English language also Chinese, German, French and Spanish languages © ABB Group February 6, 2015 | Slide 3

TCO Tool / A Quick Guide Pre-word 2 4/22/2017 TCO tool is an universal easy-to-use tool for Determining the transformer loss capitalization values (”A” and ”B” factors) Comparing transformers with different first cost and loss values 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 the number of trees needed to compensate the extra emissions caused by the trafo with lower efficiency Calculation formulas are based on IEC 60076-20 (current draft) on applicable parts (the results are fully applicable with ”IEEE” transformers as well) © ABB Group February 6, 2015 | Slide 4

TCO Tool / A Quick Guide Interface / inputs 1 4/22/2017 i-buttons for help © ABB Group February 6, 2015 | Slide 5

TCO Tool / A Quick Guide Interface / inputs 2 4/22/2017 i-buttons for help © ABB Group February 6, 2015 | Slide 6

TCO Tool / A Quick Guide Interface / comparison and results 4/22/2017 Peak efficiency index (IEC) is the highest efficiency that the transformer can reach at an optima loading point. It is calculated based on the IEC definition of efficiency. Total cost of ownership is the sum of the initial purchase cost and the net present value of the cost of losses during the lifetime. In this calculation, differences in other lifecycle cost components such as installation, maintenance, possible out-time and decommission costs are not included. Total lifetime savings during the lifetime of the transformer in selected currency when comparing the “Lowest total cost” and the transformer x. Payback time in years for the marginal investment on the higher efficiency when comparing the “Lowest total cost” and the transformer x. Simple payback calculation method. Energy savings per year and total – The amount of energy saved when selecting the “Lowest total cost” instead of transformer x. CO2 emission reduction per year – The amount of CO2 emission avoided in tons when selecting the “Lowest total cost” instead of transformer x. Calculated using the global average CO2 emission of 489 g per kWh generated. CO2 absorption capability of trees – The number of trees needed to offset the higher CO2 emissions caused by a transformer with lower efficiency based on the average annual absorption capability of 22 kg of CO2 by a single tree. © ABB Group February 6, 2015 | Slide 7

TCO Tool / A Quick Guide TCO Tool / interface / basic reporting (pdf print) 4/22/2017 © ABB Group February 6, 2015 | Slide 8

TCO Tool / A Quick Guide Notes and remarks 4/22/2017 Cooling losses Cooling losses of a transformer equal the power consumption of the cooling equipment of the transformer. In case of cooling with natural oil and air flow (ONAN), the cooling losses are zero due to the fact that no additional power for pumps or fans is needed With transformers with forced oil flow (OFAF, ODAF or OFWF) the pumps for oil are usually energised at no load condition of the unit. Therefore, for a typical case the cooling losses at no load ( 𝑃 𝐶0 ) for those transformers equal the power consumption of the oil pumps © ABB Group February 6, 2015 | Slide 9

4/22/2017 © ABB Group February 6, 2015 | Slide 2