Accelerating the Global Adoption of

ENERGY-EFFICIENT TRANSFORMERS
UN Environment – Global Environment Facility | United for Efficiency (U4E)

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 ENERGY-EFFICIENT TRANSFORMERS 2

Copyright © United Nations contained within this publication is for

general guidance on matters of interest
Environment Programme, 2017
only, and may be subject to change
This publication may be reproduced without notice.
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 ENERGY-EFFICIENT TRANSFORMERS 3

ACKNOWLEDGEMENTS
The United Nations Environment Programme (UN
Environment) would like to thank the Energy-Efficient
Transformer Expert Taskforce for their valuable
comments and advice:

Angelo Baggini, Università degli Studi di Bergamo, U4E Expert Taskforce Chair
Marcelo Padilla, Ministry of Energy - Chile, U4E Expert Taskforce Vice Chair
Michael Scholand, UN Environment - Economy Division
Mayur Karmarkar, International Copper Association (ICA)

Kai Pollari, ABB

Li Pengcheng, China National Institute of Standardization
Liu Ren, China National Institute of Standardization
Ibrahim Soumaila, ECOWAS - Centre for Renewable Energy and Energy Efficiency
Victor Martins, Eskom
Klaus Giefer, Hitachi Metals Europe GmbH
Phil Hopkinson, HVOLT/NEMA Consultant
Matt Malinowski, ICF International
Joe Ritchie, International Energy Agency (IEA)
Virginie Letschert, Lawrence Berkeley National Laboratory (LBNL)
Dave Millure, Metglas/Hitachi Metals
FOR MORE
Paul Jarman, National Grid – United Kingdom (UK)
INFORMATION,
CONTACT:
Terry Brennan, Natural Resources Canada
UN Environment, U4E
Ken Colburn, Regulatory Assistance Project
Economy Division
Alison Chikova, Southern African Power Pool
Energy & Climate Branch
Richard Mariwa, Southern African Power Pool
1 Rue Miollis, Building VII
Paul Huggins, The Carbon Trust
75015, Paris
Adesh Singh, Eskom, South Africa
FRANCE
Jacqueline Alvarez, UN Environment – Economy Division - Chemicals and Health
Tel: +33 (0)1 44 37 14 50
Manuel Soriano, United Nations Development Programme (UNDP)
Thomas Dressen, EPS Capital
Fax: +33 (0)1 44 37 14 74

Steve Kukoda, ICA E-mail: u4e@unenvironment.org

Philip Zheng, ICA united4efficiency.org
Pierre Cazelles, ICA
Sommai Phon-Amnuaisuk, International Institute for Energy Conservation

Patrick Blake, UN Environment - Economy Division

Giulia D’Angiolini, UN Environment - Economy Division
Jonathan Duwyn, UN Environment - Economy Division
Brian Holuj, UN Environment - Economy Division
Mark Radka, UN Environment - Economy Division
Eric Yang, UN Environment - Economy Division
Sudhir Sharma, UN Environment - Asia Pacific Office

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FOREWORD
Improving energy efficiency is the fastest, cheapest and cleanest way
to get reliable power to more people.

Well over half of the world’s However, many developing and an array of partners. Participating
electricity is consumed by just emerging economies are just manufacturers include ABB,
four products: electric motor starting to explore such Arçelik, BSH Hausgeräte GmbH,
systems, lighting, room air Electrolux, MABE, MEGAMAN,
opportunities. A well-designed
conditioners, and residential Osram, Philips Lighting, and
set of policies can help transform
refrigerators. These products, Whirlpool Corporation U4E
these markets by enabling them
and the transformers that help works under the umbrella of
to leapfrog past out-dated
get power to them, often waste the Sustainable Energy for All
technologies to superior, cost-
significant amounts of electricity initiative, leading the ‘‘Energy
effective alternatives.
due to poor designs and improper Efficiency Accelerators’’ of
use. As a result, consumers and United for Efficiency (U4E) is a Lighting, Appliances and
business face higher electricity global initiative launched in 2015 Equipment.
bills, utilities struggle to meet to accelerate such a transition
This report guides policymakers
excessive demand for power, and unlock lasting economic,
on how to promote energy-
governments are burdened with health, environmental, and
efficient distribution transformers
additional economic development climate benefits. UN Environment
and large power transformers
challenges, and the planet leads U4E, with funding from the
in their national markets. It
suffers from worse pollution and Global Environment Facility (GEF)
is based on U4E’s Integrated
greenhouse gas (GHG) emissions. and steadfast support from the
Policy Approach, which has
UN Development Programme,
Most developed countries are been used around the world to
CLASP, the International
well underway in the transition bring about sustainable market
Copper Association, the Natural
to energy-efficient transformers. transformations.
Resources Defense Council, and

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 ENERGY-EFFICIENT TRANSFORMERS 5

THIS REPORT FOCUSES ON

ENERGY-EFFICIENT
TRANSFORMERS

OTHER GUIDES IN THIS

SERIES INCLUDE:

The content was developed room air conditioners, residential

based on expert insights refrigerators, electric motors,
from over 20 organisations and transformers. An additional
ranging from manufacturers overarching “Policy Fundamentals AND AN OVERARCHING
FUNDAMENTAL GUIDE:
and industry associations to Guide” provides general guidance
environmental groups, academia, on the establishment of a national
and governments. This balanced programme for energy-efficient
cohort offers credible guidance to products. A wealth of additional
address common questions. resources and information on how
to get involved in U4E is available
This report is part of a series of
at www.united4efficiency.org.
U4E guides, which cover lighting,

Angelo Baggini,
Università degli
Studi di Bergamo,
U4E Expert
The content was developed based on Taskforce Chair

expert insights from over 20 organisations,

ranging from manufacturers and industry
associations to environmental groups,
academia, and governments.

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EXECUTIVE
SUMMARY
Many more transformers are needed to reliably meet the increasing
demand for electricity around the world. The installed global stock is
expected to increase by a compounded annual growth rate of 3.7 per
cent, more than a doubling the number of transformers between 2015
and 2040. Africa has the highest projected annual growth rate over this
period, 4.9 per cent, with the installed stock more than tripling.

The transformer’s performance Using more efficient transformers

has major impacts on electricity can save nearly 5 per cent of
use given the non-stop operation global electricity consumption.
of the equipment over its 25-year By 2040, annual electricity
service life. Better performance savings of over 750 TWh are
translates to reduced load on possible (equivalent to the annual
the electricity system, lower electricity generated by over 100
electricity bills, and greater coal-fired power plants with a
reliability. Payback periods capacity of 1,000 MW), saving
vary with the equipment and more than 450 million tonnes of
electricity costs and can be as greenhouse gas (GHG) emissions.
short as one year or as long as six
Although most transformers have
years or more.
efficiency levels greater than 98

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per cent, a life-cycle assessment Figure 1:

study conducted for the Illustration of electricity transmission
and distribution system3
European Commission (EC) = 600 - 1,700 MW
found that the energy consumed
during a transformer’s service
NUCLEAR PLANT
life is the dominant factor
contributing to the environmental = 600 MW EXTRA = 200 MW
HIGH VOLTAGE
impacts over its life cycle.1
265 TO 275kV
Therefore, it is important to COAL PLANT HYDRO-ELECTRIC
PLANT
consider cost-effective measures
that could reduce losses in the
transformer and alleviate these
environmental impacts.
INDUSTRIAL
= 30 MW = 150 MW
Technical solutions to improve the POWER PLANT HIGH VOLTAGE
110kV AND UP MEDIUM SIZED
energy efficiency of transformers POWER PLANT
are commercially available,
TRANSMISSION GRID
and the market penetration of FACTORY

highly-efficient transformers has

DISTRIBUTION GRID
significant room for growth. Policy
measures are being adopted in
a few countries to encourage MEDIUM
VOLTAGE
and ensure greater penetration
of energy-efficient transformers,
= 3 MW = UP TO 150 MW
but the vast majority of markets
SUBSTATIONS
remain untouched. CITY
POWER PLANT

Transformers are static devices in CITY

NETWORK = 2 MW
electricity systems that transfer
electrical power between INDUSTRIAL
CUSTOMERS
circuits through electromagnetic
induction. Their application
enables significant energy
RURAL NETWORK
savings by increasing the voltage
and decreasing the current, SOLAR FARM

since losses are proportional to

= 400 kW
the amount of current flowing
through the wire.2 Generally, OFFICE BUILDING
WIND FARM
electricity will pass through four or
five transformers as it travels from LOW
the power plant to the customer. VOLTAGE

MW is an abbreviation for megawatt and kW is an abbreviation for

kilowatt; both are measures of power, whereby 1,000 kW is equal to
one MW. The abbreviation kV is kilovolt, meaning 1,000 volts; and
transformers are depicted in the schematic as two interlocking rings.

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The most common transformer around the perimeter of liquid- market-related differences
is liquid-filled with windings filled transformers to guard that need to be taken into
that are insulated and cooled against leaks. consideration by policymakers.
with a liquid. These transformers Capital-constrained electric
A dry-type transformer is
are most often used by electric utilities often procure less
insulated and cooled by air
utilities and can be found in all efficient transformers since the
circulating through the coils.
stages of the electricity network, purchase price is lower or procure
These are found in certain
from generation step up through fewer units with higher loading
distribution networks and are
transmission and distribution. to offset the high purchase
typically used by commercial and
They are usually filled with mineral price. Market protectionist
industrial customers, rather than
oil, which is flammable and may policies such as tariffs or local
electric utilities.
be prohibited for use inside of content requirements can
buildings, but fire-resistant liquids Liquid-filled transformers tend to also prevent more energy-
are available.4
be more efficient than dry-type efficient transformers from
transformers for the same rated entering the market, which is a
power (kVA5). They also tend to particular problem if domestic
have greater overload capability manufacturers lack the
and longer service life. competency to produce energy-
efficient equipment.
The installation location can be a
critical consideration. Liquid-filled In 2017, all electric power
transformers are physically smaller transformers in service globally
than dry-type for the same rated are estimated to have 1,100
power, which can be important TWh of losses.6 This is roughly
in space-constrained areas. equivalent to the total annual

Higher-capacity transformers electricity consumption of Japan.

used outdoors are almost always Over the next two decades, these

liquid-filled. Lower-capacity losses are projected to rise as

transformers used indoors are economies expand and additional

Liquid-filled transformers are often dry-type since the fire-risk is electricity capacity is added.
housed in a sealed tank that lower than those that use mineral
Table 1 presents a projection of
facilitates circulation of fluid oil. Dry-type transformers typically
world electricity demand and the
through the winding ducts and are housed in enclosures, with
proportion of losses attributable
around wire coils. The heat the windings insulated through
to all electric power transformers
removed from the core-coil vacuum pressure impregnated
around the world.7 It also shows
assembly by the fluid is then varnish and epoxy resin. Dry-type
the amount of energy and
transferred to the environment insulation is typically designed to
carbon dioxide (CO2) savings that
through the tank walls that withstand operating temperatures
would result from all countries
have fins to enhance cooling up to 220°C.
adopting new or updating existing
effectiveness or through external
Although there are no physical minimum energy performance
radiators with passive or active
or design differences between standards (MEPS) for transformers
fluid circulation (i.e. pumps) and
transformers used in developed, starting in 2020.
cooling fans. Some countries have
environmental protection laws developing, or emerging
requiring containment troughs economies, there are important

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Table 1: Electricity and CO2 savings potential of all electric power transformers globally8

DESCRIPTION Units 2020 2025 2030 2035 2040

World electricity consumption TWh/yr 24,222 27,516 30,875 34,100 37,352

Baseline electricity loss by transformers TWh/yr 1,181 1,306 1,462 1,643 1,845
ELECTRICITY SAVINGS

% of world electricity use % 4.88 4.75 4.73 4.82 4.94

Annual savings from MEPS in 2020 TWh/yr 18 113 218 325 426

Annual savings from BAT in 2020 TWh/yr 34 209 400 595 776

Cumulative savings from MEPS in 2020 TWh 18 390 1,267 2,678 4,610

Cumulative savings from BAT in 2020 TWh 34 718 2,331 4,918 8,444

Baseline emissions from transformer MT/yr 732 817 923 1,046 1,183
electricity losses
CO2 SAVINGS

Annual savings from MEPS in 2020 MT/yr 10 66 127 190 250

Annual savings from BAT in 2020 MT/yr 20 129 248 370 483

Cumulative savings from MEPS in 2020 MT 10 226 737 1,562 2,693

Cumulative savings from BAT in 2020 MT 20 441 1,438 3,045 5,240

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Table 2 presents the list of countries with policies to promote more energy-efficient transformers based on
International Electrotechnical Commission (IEC) and Institute for Electrical and Electronic Engineers (IEEE)
standards. MEPS and high-efficiency performance specifications (HEPS ) are listed. IEC 60076-20, published
in January 2017, focuses on harmonisation (see section 3.2 of this report) to reduce trade barriers and expand
markets for energy-efficient transformers.

Table 2: Countries with energy performance standards and specifications for transformers

LIQUID-FILLED LIQUID-FILLED DRY-TYPE DRY-TYPE LARGE POWER

COUNTRY
THREE-PHASE SINGLE-PHASE THREE-PHASE SINGLE-PHASE TRANSFORMERS

AUSTRALIA MEPS / HEPS MEPS / HEPS MEPS / HEPS MEPS/HEPS ---

CANADA --- --- MEPS MEPS ---

CHINA MEPS - Grade 1 JB/T (industrial) MEPS - Grade 1 --- MEPS

EUROPE* MEPS – Tier 1, 2 --- MEPS – Tier 1, 2 --- MEPS

INDIA MEPS MEPS --- --- ---

ISRAEL MEPS / HEPS --- MEPS / HEPS --- ---

JAPAN** Top-runner Top-runner Top-runner Top-runner ---

MEXICO MEPS MEPS --- --- ---

REPUBLIC
MEPS / HEPS MEPS/HEPS MEPS/HEPS MEPS/HEPS ---
OF KOREA

US MEPS MEPS MEPS MEPS ---

VIETNAM MEPS --- --- --- ---

* The European regulations apply to all 28 member countries of the European Union (EU), as well as the
European Free Trade Area (Iceland, Liechtenstein, and Norway) and Switzerland.

** Japan’s Top Runner programme applies to medium voltage (3 and 6 kV) distribution transformers.
It does not apply to the electric utility sector.10

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Figure 2:
Countries
without
efficiency
programmes
for distribution
transformers

The vast majority of countries to achieve them. It can be applied acceptance. Supporting
have yet to take such action. to large power and distribution policies include labels that
At the time of this printing, the transformers in both utility endorse the performance of
ten countries with the largest networks as well as those used the equipment or allow for easy
markets for transformers are (in in commercial and industrial comparison of performance
descending order) : China, the
11
applications. between competing products.
United States (US), Russia, Japan, Consumer awareness
An Integrated Policy Approach to
India, Brazil, Canada, Thailand, campaigns are also used to
fully transform a market includes:
UK, and Saudi Arabia. Those that help purchasers make more
do not have policies to promote • Standards and Regulations informed decisions about the
energy-efficient transformers are that define which equipment total cost of ownership of
shown in blue in Figure 2. is blocked from the market the equipment and to modify
(those that do not meet behaviour (e.g. encouraging the
Policymakers are encouraged to
minimum energy performance timely repair of equipment by
use this guide in concert with the
requirements (MEPS)), which certified technicians).
“Policy Fundamentals Guide” and
equipment may be recognised • Finance and Financial Delivery
other resources available at www.
for meeting performance Mechanisms that address the
united4efficiency.org to develop
and quality requirements, barrier of higher upfront costs
and implement a national efficient
how to test the equipment, of efficient equipment through
transformers strategy.
and other aspects. Standards incentives such as grants,
The guidance is meant to be and regulations are essential rebates and tax-relief, or by
flexible rather than prescriptive. to the success of market extending credit lines, partial
Each country should consider transformation and therefore risk guarantees, loans, bulk
and make decisions based are the cornerstone of the U4E procurement opportunities,
on its specific priorities and Integrated Policy Approach. and equipment leasing through
circumstances. This process financial intermediaries.
• Supporting Policies that ensure
should involve all relevant
the smooth implementation • Monitoring, Verification
authorities and stakeholders in
of standards and regulations and Enforcement (MVE) to
jointly determining priorities and
and achieve broad public track which equipment is
the most appropriate pathways

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sold in the market, to test • Environmentally Sound KEY RECOMMENDATIONS

the equipment to ensure Management and Health given FOR POLICYMAKERS:
that claims of performance that PCBs are a hazardous • Use this report, the “Policy
are accurate, and to prompt substance that is being Fundamentals Guide”, and
corrections by those that fail removed from the installed other resources available at
to comply. Successful market stock of transformers around www.united4efficiency.org
transition depends on MVE. the world. Guidance developed to develop and implement
Unless effective and timely by UN Environment and a national efficient
market surveillance systems the Stockholm Convention transformers strategy.
are in place, substandard Secretariat12 detail global best
• Adopt MEPS for
products risk entering markets practices for locating, handling
transformers while making
in increasing numbers and and disposing of electrical
efforts to harmonise to
reducing energy and financial equipment contaminated
standards with neighbouring
savings. To enhance market by PCBs and to thus avoid
countries and international
enforcement capacities, the environmental or health
test methods, such as IEC
sharing of information and skills impacts of PCBs. Special
60076.
between countries and across attention should be given to
regions offers an effective way maintenance activities, to avoid • Energy labelling schemes
through which to promote spreading PCB contamination, should be implemented
best practice. International and to the development of and/or HEPS levels
and regional cooperation for a legal framework around defined to enable
enforcement through the the end-of-life activities of purchasers to easily
sharing of laboratory and recycling and recovery. Due to identify top-performing
test capacities, programmes scrap metal value, transformers transformers in the market.
and test data, is highly already enjoy a very high level • To account for losses in
recommended. of recycling of units taken out transformers, governments
of service if cleaned from PCBs. should implement
purchasing practices that
are based on the total
cost of ownership, which
includes the costs over a
transformer’s entire lifetime
(typically exceeding 25
years). A whole life costing
model attributes a present
value to the whole life costs
of operating the transformer
in a utility or end user’s
electrical network.

• Countries should use extra

caution for transformers
containing PCBs to ensure
properly handling and
disposal according to the
Stockholm Convention
on Persistent Organic
Pollutants.

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TABLE OF CONTENTS
1 INTRODUCTION................................................... 16 6 MARKET MONITORING, VERIFICATION
1.1 Why Leapfrog to Energy-Efficient AND ENFORCEMENT......................................... 57
Transformers?....................................................... 19 6.1 Legal and Administrative Framework.............. 59
1.2 Barriers to Market Transformation . ................. 20 6.2 Financing Monitoring, Verification
1.3 The Integrated Policy Approach . ..................... 21 and Enforcement Schemes............................... 60
1.4 Report Overview.................................................. 23 6.3 Components of a Robust
MVE Programme................................................... 61
2 TRANSFORMER MARKETS 6.3.1 Product Registry Systems.................................. 62
AND TECHNOLOGY.............................................24 6.3.2 Test Laboratories . ............................................... 63
2.1 Transformer Technology . ................................. 25 6.3.3 Proactive Communications................................ 64
2.1.1 Transformer Losses . .......................................... 25 6.3.4 Market Monitoring............................................... 64
2.1.2 Improving Energy Performances..................... 26 6.3.5 Regulatory Enforcement.................................... 65
2.1.3 Refurbished Transformers ................................ 27
2.2 Market Developments . ...................................... 28 7 ENVIRONMENTAL SUSTAINABILITY
AND HEALTH....................................................... 66
3 STANDARDS AND REGULATIONS ..................... 31 7.1 Policy and Legal Framework ............................. 68
3.1 Minimum Energy Performance Standards..... 32 7.2 Collection Schemes............................................. 69
3.1.1 Testing and Energy-Performance Metrics .... 32 7.3 Recycling Programmes ...................................... 69
3.1.2 MEPS for Liquid-Filled Transformers .............. 34 7.4 Financing Environmentally
3.1.1 MEPS for Dry-Type Sustainable Management . ................................ 69
Distribution Transformer ................................... 38 7.5 Ester Electrical Insulating Fluids . ..................... 70
3.2 Harmonisation of Regulations and
Standards and the IEC . ...................................... 40 8 IMPLEMENTATION.............................................. 71
3.2.1 IEC 60076 Test Methods . .................................. 40
3.2.2 IEC Recommended Efficiency Levels .............. 42 9 RESOURCES........................................................ 73

4 SUPPORTING POLICIES..................................... 43 10 REFERENCES...................................................... 76

4.1 Labelling ............................................................... 44
ANNEX A. GLOSSARY................................................... 78
4.2 Communication and Education . ...................... 46
4.2.1 Designing a Communications Campaign ....... 46
ANNEX B. COMPARISON OF MEPS
BETWEEN DIFFERENT COUNTRIES............................ 79
5 FINANCE AND FINANCIAL
DELIVERY MECHANISMS....................................49
ANNEX C. IEC 60076 TEST STANDARDS.................... 81
5.1 Sources of Finance . ............................................ 50
5.2 Financing and Delivery Mechanisms................ 52 ANNEX D. TOTAL COST OF OWNERSHIP
5.2.1 Utility Regulatory Frameworks.......................... 52 FOR VALUING LOSSES
5.2.2 Energy Savings Performance (ANNEX A FROM IEC TS 60076-20:2017)................... 86
Contracting through ESCOs............................... 53
5.2.3 Public–Private Partnership Financing ANNEX E. IMPROVING ENERGY
and Delivery Model.............................................. 54 PERFORMANCE OF TRANSFORMERS....................... 92
5.3 Utility Purchasing Practices ............................. 54
ANNEX F. IEC AND SEAD RECOMMENDED
ENERGY PERFORMANCE LEVELS............................... 95

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LIST OF TABLES
TABLE 1. Electricity and CO2 Savings Potential of all Electric Power Transformers Globally ..........................9

TABLE 2. Countries with Energy Performance Standards, specifications and Labels for Transformers .... 10

TABLE 3. General Overview of the Main Types of Electrical Power Transformers ......................................... 18

TABLE 4. Energy and CO2 Savings Potential of all Electric Power Transformers Globally . ........................... 19

TABLE 5. Barriers to the Adoption OF Energy-Efficient Transformers............................................................. 20

TABLE 6. Loss-Reduction Interventions for Transformers................................................................................... 27

TABLE 7. Global Market Share of Leading Transformer Manufacturers in 2014...............................................28

TABLE 8. Electricity Demand Growth Projection by Region, Annual Consumption (TWH)...........................29

TABLE 9. Projection of Installed Stock of Transformers by Region, Capacity (GVA) . ....................................29

TABLE 10. Projection of Transformer Losses by Region, Annual Electricity Consumption (TWH) ...............30

TABLE 11. Summary of Coverage of Liquid-Filled Distribution Transformer Programmes ........................... 35

TABLE 12. Summary of Coverage of Dry-Type Distribution Transformer Programmes..................................38

TABLE 13. List of Standards for IEC 60076 Power Transformers..........................................................................41

TABLE 14. Countries that have Labelling Programmes for Power Transformers............................................. 45

TABLE 15. Communication Program Stakeholders and Areas of Interest / Involvement ............................. 47

TABLE 16. Product Registry System Users and Their Potential Needs..............................................................62

TABLE 17. Essential Elements for the Reliable Operation of a Test Laboratory...............................................63

TABLE 18. Illustrative Comparison of Power Rating (KVA) Conventions, IEC and IEEE................................. 80

TABLE 19. Loss-Reduction Interventions for Transformers ................................................................................92

TABLE 20. European Ecodesign Regulation: Minimum Peak Efficiency Index Requirements
for Large Power Liquid-Filled Transformers..........................................................................................................95

TABLE 21. European Ecodesign Regulation: Maximum Full Load Losses for Medium Power
Liquid-Filled POWER Transformers.........................................................................................................................96

TABLE 22. European Ecodesign Regulation: Maximum Full Load Losses for
Medium Power Dry-Type Power Transformers.....................................................................................................97

TABLE 23. SEAD Efficiency Equations for Distribution Transformers, 50HZ and IEC Rated Power (%).......98

TABLE 24. SEAD Efficiency Equations for Distribution Transformers, 60HZ and IEEE Rated Power (%).....98

LIST OF FIGURES
FIGURE 1. Illustration of Electricity Transmission and Distribution System . ..................................................... 7

FIGURE 2. Countries Without Efficiency Programmes for Distribution Transformers . .................................. 11

FIGURE 3. Illustration of Electricity Transmission and Distribution System......................................................17

FIGURE 4. Integrated Policy Approach for a Rapid Transition to Efficient Transformers..............................22

FIGURE 5. Example of the Relationship Between Transformer Losses and Efficiency .................................26

FIGURE 6. Efficiency at 50% Load (IEC) for Three-Phase Liquid-Filled Transformers.....................................36

FIGURE 7. Efficiency at 50% Load (IEC) for Single-Phase Liquid-Filled Transformers.................................... 37

FIGURE 8. Efficiency Programmes at 50% Load for Three-Phase Dry-Type Distribution Transformers......39

FIGURE 9. Example of a Distribution Transformer Label from India, Bureau of Energy Efficiency ............. 44

FIGURE 10. Fundamental Aspects of the Market Monitoring, Verification and Enforcement Process.......58

FIGURE 11. Monitoring, Verification and Enforcement Benefits to Stakeholders............................................58

FIGURE 12. Pyramid of Escalating Enforcement for Non-Compliant Manufacturers or Importers .............65

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ACRONYMS AND ABBREVIATIONS

CAGR..............Combined Annual Growth Rate MEPS.......................................Minimum Energy
Performance Standards
CDM.............. Clean Development Mechanism
MVA..............megavolt-ampere (106 amperes)
CO2. ............................................ Carbon dioxide
MT.............................. megatonnes (106 tonnes)
DFID....................Department for International
Development (UK) MVE..............................Monitoring, verification
and enforcement
DSM...................... Demand Side Management
MW...................................................... megawatt
EESL..........Energy Efficiency Services Limited
NGO..............Non-governmental organisation
EPA... Environmental Protection Agency (US)
OECD......................Organisation for Economic
EPR.............Extended producer responsibility
Co-operation and Development

EPT.............................Energy performance test

PCB.......................... Polychlorinated biphenyls

ESCO..........................Energy service company

PEI.................................... Peak Efficiency Index

EU..............................................European Union
PFI.............................. Private Finance Initiative

FAQ......................Frequently Asked Questions

PPP.......................... Public Private Partnership

GEF....................... Global Environment Facility

PTT.............................. Power transformer tests

GHG...........................................Greenhouse gas
R&D....................... Research and development

GVA..................... gigavolt-ampere (giga = 109)

SEAD......................Super-efficient Equipment
HEPS............................................High Efficiency and Appliance Deployment
Performance Specification
SEforAll............................... Sustainable Energy
Hz..................................................................Hertz for All initiative

ICA...............International Copper Association TCO............................. Total Cost of Ownership

IEC.................... International Electrotechnical TWh............................................. Terawatt-hour

Commission
U4E....................................United for Efficiency
IEEE................................. Institute for Electrical
US...............................United States of America
and Electronics Engineers
UNDP...........................................United Nations
IECEE....................IEC Conformity Assessment
Development Programme
for Electrotechnical Equipment
and Components UNEP........................................UN Environment

kV...............................................................kilovolt $........................................ United States Dollars

kVA......................... kilovolt-ampere (kilo = 103) W.................................................................... Watt

kW............................................................ kilowatt yr..................................................................... year

LCA................................Life-Cycle Assessment

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 ENERGY-EFFICIENT TRANSFORMERS 16

1. INTRODUCTION

Transformers are electrical devices in electricity systems that transfer electrical power
between circuits through electromagnetic induction. Their application enables significant
energy savings by increasing the voltage and decreasing the current.13 Generally, electricity
will usually pass through four or five transformers as it travels from the power plant to the
customer.

Transformers with the highest voltage above 230kV and self-cooled power ratings that
exceed 60 MVA are generally referred to as large power transformers. These transformers
can be found at generating stations and electrical substations converting electrical power to
high voltages for transmission. Medium power transformers generally have voltage ratings
between 36 kV and 230 kV and are three-phase units with power ratings between 2.5 MVA
and 60 MVA. These are most often used to transfer power to a subtransmission circuit.

The voltage is further reduced by medium voltage distribution transformers into circuits
where the electricity is distributed to residential, commercial, and industrial customers (see
Figure 3). Transformers can be liquid-filled (cooled with mineral oil or other insulating liquid)
or dry-type (cooled with air) (see Table 3). In some markets, there are a special subgroup of
low-voltage distribution transformers having a primary voltage less than or equal to 1 kV.

Low-voltage dry-type distribution transformers are often found inside buildings or industrial
facilities as part of the electrical infrastructure of those facilities, and work to reduce
losses within the electrical distribution system or industrial installation. As a more efficient
alternative to low-voltage dry-type transformers, some liquid-filled units are also used if
they comply with local building codes by incorporating low-flammability cooling liquids
(e.g. ester oil with a high flash (fire) point i.e. >300°C).

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Figure 3:
Illustration
= 600 - 1,700 MW of electricity
transmission
and distribution
NUCLEAR PLANT
system14
= 600 MW EXTRA = 200 MW
HIGH VOLTAGE
265 TO 275kV
COAL PLANT HYDRO-ELECTRIC
PLANT

INDUSTRIAL
= 30 MW = 150 MW
POWER PLANT HIGH VOLTAGE
110kV AND UP MEDIUM SIZED
POWER PLANT

TRANSMISSION GRID
FACTORY

DISTRIBUTION GRID

MEDIUM
VOLTAGE

= 3 MW = UP TO 150 MW
SUBSTATIONS
CITY
POWER PLANT
CITY
NETWORK = 2 MW

INDUSTRIAL
CUSTOMERS

RURAL NETWORK

SOLAR FARM

= 400 kW

OFFICE BUILDING
WIND FARM

LOW
VOLTAGE

MW is an abbreviation for megawatt and kW is an abbreviation for kilowatt; both are measures
of power, whereby 1,000 kW is equal to one MW. The abbreviation kV is kilovolt, meaning 1,000
volts; and transformers are depicted in the schematic as two interlocking rings.

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DISTRIBUTION TRANSFORMER POWER TRANSFORMER DRY-TYPE TRANSFORMER

Table 3:
General
overview of the
main types of
electrical power
transformers

TRANSFORMER TYPICAL
VOLTAGE (KV) PHASES COMMON USE
GROUP INSULATION

Stepping up to or down from higher

LARGE >245 Single voltages for transmission of electricity
Liquid-filled
POWER (High voltage) and Three over long distances; substation
transformers

>36 & ≤230 Stepping voltages down from a

MEDIUM Single Liquid-filled
(Medium sub-transmission system to a primary
POWER and Three or dry-type
voltage) distribution system

MEDIUM ≤36 Stepping voltages down within a

Single Liquid-filled
VOLTAGE (Medium distribution circuit from a primary
and Three or dry-type
DISTRIBUTION voltage) to a secondary distribution voltage

Stepping voltages down within a

LOW VOLTAGE ≤1 Single
Dry-type distribution circuit of a building or
DISTRIBUTION (Low voltage) and Three
to supply power to equipment

Transformers operate nonstop and often Technical solutions to improve the energy
have very long service lifetimes, typically efficiency of transformers are commercially
exceeding 25 years. Although most available. The market penetration of highly
transformers have efficiency levels greater efficient transformers still has significant
than 98 per cent, a study conducted for the room for growth. Policy measures are being
EC found that energy consumed during a adopted in a few countries to encourage
transformer’s service life is still the dominant and ensure greater penetration of energy-
factor contributing to environmental efficient transformers, but the vast majority
impacts over its lifecycle.15 Therefore, it of markets remain untouched.
is critically important to consider cost-
effective measures that could reduce losses
in the transformer and alleviate these
environmental impacts.

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1.1 WHY LEAPFROG TO ENERGY-EFFICIENT

TRANSFORMERS?
Transformers lose approximately 1,100 TWh of electricity worldwide.16 This is roughly
equivalent to the total national electricity consumption of Japan. Over the next two decades,
such losses are projected to rise as economies expand and additional capacity is added. Table 4:
Table 4 presents a projection of world electricity consumption and the proportion of losses Electricity and
CO2 savings
attributable to power and distribution transformers.17 The table also shows the energy and
potential of all
CO2 savings that would result from all countries adopting or updating minimum energy
electric power
performance standards (MEPS) for transformers starting in 2020 or the best available transformers
technologies (BAT) starting in 2020. globally18

DESCRIPTION Units 2020 2025 2030 2035 2040

World electricity consumption TWh/yr 24,222 27,516 30,875 34,100 37,352

Baseline electricity loss by transformers TWh/yr 1,181 1,306 1,462 1,643 1,845
ELECTRICITY SAVINGS

% of world electricity use % 4.88 4.75 4.73 4.82 4.94

Annual savings from MEPS in 2020 TWh/yr 18 113 218 325 426

Annual savings from BAT in 2020 TWh/yr 34 209 400 595 776

Cumulative savings from MEPS in 2020 TWh 18 390 1,267 2,678 4,610

Cumulative savings from BAT in 2020 TWh 34 718 2,331 4,918 8,444

Baseline emissions from transformer MT/yr 732 817 923 1,046 1,183
electricity losses
CO2 SAVINGS

Annual savings from MEPS in 2020 MT/yr 10 66 127 190 250

Annual savings from BAT in 2020 MT/yr 20 129 248 370 483

Cumulative savings from MEPS in 2020 MT 10 226 737 1,562 2,693

Cumulative savings from BAT in 2020 MT 20 441 1,438 3,045 5,240

Policy measures are urgently needed to accelerate adoption of energy-efficient

transformers. The fact that 13 of the largest economies in the world already regulate
these products is a sign that transformers present a compelling opportunity for saving
energy and money.

On a life-cycle cost basis, an energy-efficient transformer is very appealing given its

non-top operation and 25-year service life. These savings translate into reductions in peak
loading, lower electricity bills and greater reliable of supply. Payback periods vary with the
equipment and electricity costs and can be as short as one year or as long as six years or
more, depending on how ambitious the government wishes to be with the regulation.

For transformers, a six -year payback on a product that typically lasts more than 25 years is
still very attractive.

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1.2 BARRIERS TO MARKET TRANSFORMATION

Barriers (see Table 5) to the adoption of energy-efficient transformers must be addressed
at the policy design phase to ensure a successful market transformation.
Table 5:
Barriers to BARRIER DESCRIPTION EXAMPLES
the adoption
of energy- FINANCIAL Magnitude of the • Higher relative cost of energy-efficient
first cost relative transformers, poses an initial investment
efficient
to less efficient hurdle, despite favourable payback periods
transformers
technologies (which vary by economy and cost of
generation)
• Lack of sustainable financing schemes
• Lack of ability of institution to earn return
on investment

MARKET Market structures • Limited availability of energy-efficient

and constraints transformers
that prevent • High import costs or tariffs
efficient • Split incentive—utilities lack incentive
transformer to invest in efficiency because losses are
investments simply passed along as a cost of business
to end-use customers
• High number of refurbished transformers
offered on the market

INFORMATION Lack of • Lack of knowledge among policymakers,

AND AWARENESS information T&D system designers, suppliers, operations
provided and maintenance facility managers
on efficient • Poor promotion of efficient transformer
transformers products
and their energy • Business as usual approach / risk aversion
savings benefits

REGULATORY AND Structural • Lack of policies and practical experience

INSTITUTIONAL characteristics with energy-efficient transformers
of the political • Lack of policies encouraging energy-
and legal system efficient transformers—including regulatory,
that make it monitoring/verification, and enforcement
difficult to • Lack of warranties to ensure product quality
promote efficient
transformers

TECHNICAL Lack of resources • Lack of adequate or accredited testing

and infrastructure facilities
for promoting • Limited resources to monitor, verify and
efficient enforce regulations
transformers • Accessibility of poor-quality refurbished
transformers through unorganised units
disrupts consumer choices
• Access to new materials and technologies

ENVIRONMENTAL Concerns over • Lack of collection and recycling schemes

AND HEALTH RISK health or safety for recovery and treatment at end of life
PERCEPTION relating to • Addressing safety issues such as PCB
PCBs and other recovery and destruction, electrical safety
technologies • Lack of knowledge amongst different
stakeholders (including customs
departments/border control in developing
countries where end-of-life material
(transformer scrap) is imported and used
for making new transformers).

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1.3 THE INTEGRATED POLICY APPROACH

Policymakers are encouraged to use this guide in concert with the “Policy Fundamentals
Guide” and other resources available at www.united4efficiency.org to develop and
implement a national efficient transformers strategy.

The guidance is meant to be flexible, rather than prescriptive. Each country should consider
and make decisions based on its specific priorities and circumstances. This process should
involve all relevant authorities and stakeholders in jointly determining priorities and the most
appropriate pathways to achieve them. It can be applied to large power and distribution
transformers in both utility networks as well as those used in commercial and industrial
applications.

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Figure 4: U4E Integrated Policy Approach for

a rapid transition to efficient transformers

Environmentally
Standards and
Sound
An Integrated Policy Approach to fully Regulations
Management
transform a market includes: and Health

• Standards and Regulations that define

U4E
which equipment is blocked from
INTEGRATED
the market (those that do not meet POLICY
Monitoring, APPROACH
mandatory MEPS), which equipment Supporting
Verification and
Policies
may be recognized for meeting Enforcement
performance and quality requirements,
how to test the equipment,
Finance and
implementation periods, and other Financial Delivery
Mechanisms
aspects. Standards and regulations
are essential to the success of market
transformation and therefore are the
cornerstone of the U4E Integrated Policy
by those that fail to comply. Successful
Approach. Regulations should always be
market transition depends on MVE.
cost-effective.
Unless effective and timely market
• Supporting Policies that ensure the surveillance systems are in place,
smooth implementation of standards substandard products risk entering
and regulations and achieve broad public markets in increasing numbers and
acceptance. Supporting policies include reducing energy and financial savings. To
labels that endorse the performance enhance market enforcement capacities,
of the equipment or allow for easy the sharing of information and skills
comparison of performance between between countries and across regions
competing products. Consumer offers an effective way through which to
awareness campaigns are also used to promote best practice. International and
help purchasers make more informed regional cooperation for enforcement
decisions about the total cost of through the sharing of laboratory and test
ownership of the equipment and to capacities, programmes and test data, is
modify behaviour (e.g. encouraging the highly recommended.
timely repair of equipment by certified
• Environmentally Sound Management
technicians).
and Health given that polychlorinated
• Finance and Financial Delivery biphenyls (PCBs) are a hazardous
Mechanisms that address the barrier substance that is being removed from
of higher upfront costs of efficient the installed stock of transformers
equipment through incentives such around the world. Standards should
as grants, rebates and tax-relief, or be established in line with global best
by extending credit lines, partial risk practice to minimize any environmental
guarantees, loans, bulk procurement or health impact of PCBs or other harmful
opportunities, and equipment leasing material. Special attention should be
through financial intermediaries. given to the development of a legal
framework around end-of-life activities,
• Monitoring, Verification and Enforcement recycling and recovery. Due to scrap
(MVE) to track which equipment is sold metal value, transformers already enjoy
in the market, to test the equipment to a very high level of recycling of units
ensure that claims of performance are taken out of service.
accurate, and to prompt corrections

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1.4 REPORT OVERVIEW

This report offers an overview of key Chapter 6
elements needed for transforming a national Market Monitoring, Verification and
transformer market with unique insights in Enforcement (MVE) —discusses the
the following chapters: importance of MVE, from both a
manufacturer’s and consumer’s perspective.
Chapter 2
Discusses the critical role of government
Transformer Markets and Technology—
in establishing and maintaining a robust
gives an overview of technology –provides
market surveillance programme.
a description of some of the recent
innovations that are now promoting energy Chapter 7
performance in the market. It provides an Environmental Sustainability and Health—
overview of the market (end-use sectors) provides a summary of the importance and
and technology trends. Finally, this chapter benefits of recycling of used transformer
offers an overview of the U4E Integrated metals and coolant, and possible financing
Policy Approach which is the approach mechanisms for these schemes. This chapter
for promoting energy performance in has a specific focus on PCBs.
transformer markets.
Chapter 8
Chapter 3 Conclusions and Recommendations—offers
Standards and Regulations—provides an an overview of the main value and benefits
overview of the test methods and metrics associated with efficient transformers.
used to measure the performance and Touches on the critical aspects of standards
quality of transformers, and which are used and regulations (MEPS), supporting
in product regulations. It also provides a policies, finance, MVE and environmental
summary of requirements, functionality- sustainability, offering a sustainable
related requirements and product approach overall.
information obligations.
Chapter 9
Chapter 4 Implementation—provides a summary of
Supporting Policies—offers a synopsis of the process governments may choose to
the two main areas of supporting policies, follow to implement a policy-driven market
product labelling and communication and transformation in their respective national
education. The labelling summary explores markets.
the different types of labels, including
Chapter 10
comparative and endorsement labels. The
Resources—presents an overview of
communications and education section
reports and resources and energy-efficient
focuses on the critical aspect of empowering
transformer programmes and initiatives
transformer owners with information,
from around the world, including a high-
enabling them to understand how they can
level summary, web links and additional
benefit from least life-cycle cost.
information.
Chapter 5
Finally, the report offers a glossary
Financing and Financial Delivery
(Annex A) of commonly used terms found
Mechanisms—addresses the critical issue
in this report.
of overcoming first-cost barriers to market
adoption, including topics such as financing
sources, approaches and stakeholders. Areas
covered include energy service companies,
lender finance, multilateral development
institutions and other mechanisms.

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2. TRANSFORMER MARKETS
AND TECHNOLOGY

WHAT? Provides an overview of transformer markets and technology.

WHY? Sets the context on transformer technology and markets that will affect all
the subsequent discussion and decisions.

NEXT? Some key questions to keep in mind:

• When should my country shift its markets to energy-efficient
transformers?
• What are the market barriers to more efficient transformers in my
country, and how can these be overcome?
• Who are the stakeholders in our national supply chain with whom we
should be engaged with to promote energy-efficient transformers?
• If we are buying refurbished units, can they still be efficient?

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2.1 TRANSFORMER TECHNOLOGY

Transformer losses occur in an energised are manifested in the transformer as excess
transformer that is ready to convert voltage heat, which occur in the transformer core
(i.e. in a no-load condition), and when it and/or windings. The following sections
is energised and actively converting the discuss how losses occur and what can be
voltage (i.e. in a load condition). The losses done to minimise them.

2.1.1 TRANSFORMER LOSSES

Losses in the core of a transformer are of these losses varies with the square of
often called “no-load losses” or “iron losses” the current being carried. There are also
because they are present whenever the stray eddy losses in the conductor that are
transformer is energised, even when the caused by the magnetic flux. The resistive
transformer is not actively supplying a losses in the windings mean that as the
load. No-load losses are independent of loading on the transformer increases, the
the loading on the transformer, meaning losses increase as well, by approximately the
they do not change as the loading on the square of the load. This impact is visible in
transformer varies. No-load losses come Figure 5 that shows the no-load losses and
from two sources - hysteresis and eddy load losses described over loading points
currents. Hysteresis losses are created by the from 0 to 100 per cent of rated capacity
magnetic lag or reluctance of the molecules transformer loading. Peak efficiency of
in the core material to reorient themselves at the transformer occurs at the point where
the operating frequency of the transformer no-load losses are equal to load losses, and
(i.e. 50 or 60 Hz). Eddy currents occur in the this is always less than the rated nameplate
core due to the induction of the alternating capacity of the transformer.
magnetic field—the same way that field
In addition to the losses in the core and
induces current in the secondary winding.
the winding of a transformer, certain
These circulating electrical currents do not
transformers could have other sources if
leave the core; they simply circulate within
they incorporate active cooling systems
the material and become waste heat.
engaged while the transformer is operating.
Losses in the windings of a transformer are Active cooling systems include pumps and/
often called “winding losses” or “copper or fans that operate when the transformer
losses.” They are associated with the current gets above a certain temperature. The
flowing through the windings. Load losses energy used by these cooling systems
are primarily caused by the electrical is considered an operating loss of the
resistance of the windings. The magnitude transformer.

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100 3,000
Figure 5:
Example of the TRANSFORMER EFFICIENCY
relationship 98
2,500
between
transformer 96
losses and MAXIMUM EFFICIENCY OCCURS WHERE
efficiency LOAD LOSS EQUALS NO-LOAD LOSS. 2,000
94
EFFICIENCY (%)

LOSS (W)
92 1,500

90
LOAD (WINDING) LOSSES 1,000

88

NO LOAD (CORE) LOSSES 500

86

84 0
0 10 20 30 40 50 60 70 80 90 100
RATED LOADING (%)

2.1.2 IMPROVING ENERGY PERFORMANCE

A transformer can be made more energy- losses. For a given efficiency level, the no-
efficient by improving the materials of load and load losses are generally inversely
construction (e.g. better-quality core steel related: reducing one usually increases the
or winding material) and by modifying the other, as shown in Table 6. The table also
geometric configuration of the core and shows are five approaches to reducing
winding assemblies. Making a transformer no-load losses. One of these is a material-
more energy efficient (i.e. reducing electrical substitution option and four are transformer-
losses) is often a trade off between more design options. For a discussion on each of
expensive, lower-loss materials and designs, these options, please see Annex E.
and the value a customer attaches to those

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Table 6: Loss-reduction interventions for transformers

NO-LOAD LOAD EFFECT

OBJECTIVE APPROACH (CORE) (WINDING) ON
LOSSES LOSSES PRICE

Use lower-loss core materials Lower No change Higher

NO-LOAD LOSSES
DECREASE

Use better core construction techniques Lower No change Higher

Decrease flux density by increasing core

Lower Higher Higher
cross-sectional area

Decrease flux density by decreasing

Lower Higher Higher
volts/turn

Decrease flux path length by decreasing

Lower Higher Lower
conductor cross-sectional area

No
Use lower-loss conductor materials change/ Lower Higher
lower
LOAD LOSSES

Decrease current density by increasing

DECREASE

Higher Lower Higher

conductor cross-sectional area

Decrease current path length by

Higher Lower Lower
decreasing core cross-sectional area

Decrease current path length by

Higher Lower Lower
increasing volts/turn

Reduce core cross-section by increasing

Higher/ no
flux density through better core steels, Lower Higher
change
reducing conductor length

2.1.3 REFURBISHED TRANSFORMERS

In some capital-constrained markets, inefficient materials they were built with
businesses or utilities may opt to install and/or the work that was done to repair
refurbished transformers to help control them. Refurbished transformers do not offer
installation costs. These tend to be less the same durability and reliability as new
reliable and have already lost some of their units, yet still incur the same installation
useful life. They can experience higher losses and commissioning costs and have higher
than new units either because of the old, operating costs.

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CASE STUDY: ESKOM’s Policy for Refurbished Distribution Transformers,

South Africa

In South Africa, the national electric utility, ESKOM, decided to no longer purchase and
install refurbished distribution transformers. They conducted research in one region
of the grid with approximately 100 transformers and identified various problems with
refurbished units. The suppliers were not accredited or subject to the same quality
control and quality assurance inspections as those offering new transformers.

The costs of transformer refurbishment, the lack of a technical specification for repair and
the inadequacy of repair quality management processes led to Eskom’s decision. Eskom
concluded that all faulty transformers that are outside of warranty should be scrapped
according to commercial scrappage and recycling procedures unless the transformer
has very minor defects (e.g. replacing a bushing) that can be addressed by Eskom’s
maintenance teams.

2.2 MARKET DEVELOPMENTS

In general, transformer manufacturers With the expansion of trade and sourcing of
are supportive of energy efficiency distribution transformers from around the
requirements because they enable them to world, a few companies are emerging as
earn more revenue through the construction global and regional sales leaders. The global
of superior equipment. Indicative of this, market shares of the manufacturers from
in the regulatory processes to establish 2014 are given in Table 7.
MEPS in Canada, the EU, and the US,
transformer manufacturers were supportive
of the processes, providing data, technical
assistance, and information to policymakers.

Table 7: Global market share of leading transformer manufacturers in 201419

MARKET SHARE MARKET SHARE

COMPANIES COMPANIES
IN 2014 (%) IN 2014 (%)

ABB 11.5 SCHNEIDER 2.9

SIEMENS 8.8 XD GROUP 2.7

GENERAL ELECTRIC 7.9 HOWARD INDUSTRIES 2.3

TOSHIBA 4.9 TWBB - BAODING 2.2

TBEA 4.0 JHSP 2.1

CG GROUP 3.7 HYUNDAI 1.8

MITSUBISHI 3.4 MEIDENSHA 1.7

HITACHI 3.0 SPX WAUKESHA 1.7

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As shown in Table 8, world demand for electricity is rising quickly and thus more
transformers will need to be installed to reliably service the increasing demand. Losses
from the installed stock of transformers are increasing in absolute terms, even though
some economies have energy efficiency policies in place. Losses as a percentage of
consumption have declined.

Some regions are experiencing load growth faster than other; for example, both Africa
and Asia have over 3 per cent average annual load growth.

Table 8: Electricity demand growth projection by region, annual consumption (TWh)20

REGION/
2015 2020 2025 2030 2035 2040 CAGR (%)*
COUNTRY

AFRICA 669 805 967 1,158 1,385 1,642 3.7

AMERICA 5,836 6,357 6,847 7,348 7,851 8,430 1.5

ASIA 9,590 11,802 14,039 16,321 18,426 20,475 3.1

EUROPE 4,343 4,591 4,932 5,255 5,586 5,905 1.2

EURASIA 329 360 401 444 486 522 1.9

OCEANIA 300 330 356 379 400 417 1.3

TOTAL 21,066 24,245 27,542 30,906 34,135 37,391 2.3

Table 9 provides estimates of the installed stock of transformers that are servicing the global
growth in electricity consumption, transmitting and distributing power from the generating
stations to homes, offices and industry around the world.

Table 9: Projection of installed stock of transformers by region, capacity (GVA)21

The units in this table are gigavolt-amperes, or one million kilovolt-amperes.

CAGR
2015 2020 2025 2030 2035 2040
REGION (2015-40)

(GVA) (GVA) (GVA) (GVA) (GVA) (GVA) (%)

AFRICA 564 764 994 1,256 1,550 1,878 4.9

AMERICA 2,771 3,307 3,856 4,394 4,889 5,342 2.7

ASIA 12,415 15,899 20,046 24,671 29,478 34,252 4.1

EUROPE 2,566 2,847 3,122 3,405 3,679 3,937 1.7

EURASIA 285 330 379 431 484 535 2.6

OCEANIA 250 286 325 364 399 428 2.2

TOTAL 18,850 23,433 28,722 34,521 40,478 46,372 3.7

OECD 6,184 7,298 8,405 9,447 10,345 11,097 2.4

NON-OECD 12,666 16,134 20,317 25,074 30,134 35,276 4.2

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The region with the highest projected growth rate in installed stock of transformers is
Africa, with a 4.9 per cent combined annual growth rate from 2015 to 2040. Over that time
period, Africa’s installed stock of transformers are expected to more than triple. Globally, the
installed stock increases by a CAGR of 3.7 per cent, equating to slightly more than a doubling
of transformer stock between 2015 and 2040.

The rate of growth in the non-OECD countries is nearly double the rate in the OECD.

With this growth, the electrical losses across the global stock of transformers is increasing.
Table 10 provides an estimate of the losses in all the distribution and power transformers in
the installed global stock, broken down by region.

Table 10: Projection of transformer losses by region, annual electricity consumption (TWh)22

CAGR
2015 2020 2025 2030 2035 2040
REGION (2015-40)

(TWh/yr) (TWh/yr) (TWh/yr) (TWh/yr) (TWh/yr) (TWh/yr) (TWh/yr)

AFRICA 36 48 61 77 95 114 4.8%

AMERICA 141 148 158 169 183 197 1.4%

ASIA 730 813 920 1,051 1,202 1,366 2.5%

EUROPE 141 138 129 122 118 118 -0.7%

EUROPE
18 20 23 26 29 31 2.2%
& ASIA

OCEANIA 13 14 15 16 17 18 1.3%

TOTAL 1,079 1,181 1,306 1,462 1,643 1,845 2.2%

OECD 326 329 328 330 334 341 0.2%

NON-OECD 753 852 978 1,132 1,309 1,504 2.8%

This is a business as usual scenario that assumes no new policy measures are adopted.

It is projected that the European market will experience a slight reduction in losses over
this time period owing to a regulatory measure adopted in 2014. This absolute reduction in
losses demonstrates the effectiveness of this policy instrument, as it occurs concurrently
with a growth of 1.7 per cent per annum in electricity consumption in Europe.

Overall, the OECD countries are projected to only experience a very slight increase (0.2 per
cent) in transformer losses in absolute terms between 2015 and 2040, due in large part to the
regulatory measures that have already been adopted in these economies.

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3. STANDARDS AND REGULATIONS

WHAT? A discussion on regulations and standards as policy tools for transforming

markets; an overview of the test standards and methods used to define
and measure transformer performance; a summary of minimum energy
performance standards (MEPS) as a regulatory tool to transform markets;
an outline of a systematic approach to developing MEPS; and the benefits
of harmonisation regionally and with trading partners.

Of all the policy instruments, minimum energy performance standards

(MEPS) are one of the most powerful tools, as they require that entire
markets shift to higher levels of efficiency. When combined with
supporting policies including financial incentives and communications
programmes, as well as with monitoring, verification and enforcement
activities to ensure regulatory compliance, MEPS will change markets
and ensure the realisation of national benefits from cost-effective energy
savings. This chapter starts with a discussion of the metrics that can be
used for measuring the efficiency of transformers and then focuses on
MEPS as a policy instrument. The chapter finishes by providing an
overview of the International Electrotechnical Commission (IEC)
recommended levels.

WHY? Provides information on minimum energy performance standards, or

MEPS, the first part of the U4E Integrated Policy Approach which is the
cornerstone of market transformation.

NEXT? Some key questions to keep in mind:

• What is the status of technical standards in the different markets?
Are we affiliated with the IEC?
• Do we have all the information needed to provide a complete picture?
• What is the proportion of demand met by domestic manufacturing?
How concentrated or fragmented is the industry? Who are the key
players? How current is their level of technology?
• Do we have accredited testing facilities for transformer testing?
• What level of ambition would be appropriate; should we adopt the
technically achievable, economically justifiable efficiency level in one
go or in multiple steps?

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 ENERGY-EFFICIENT TRANSFORMERS 32

3.1 MINIMUM ENERGY PERFORMANCE STANDARDS

MEPS establish the minimum energy are differences in how electrical systems
performance levels that all transformers are designed and operated around the
would have to meet in a market. Utilities and world, there are barriers that make it
other customers are still able to purchase difficult to compare the performance
at energy performance levels higher than requirements of transformers around the
the MEPS level; however, they would not be world. Annex B provides a discussion on
allowed to purchase units with an energy how a comparison can be made, taking
performance below this level. into account differences in the definition
of the transformer rating, the reference
Many countries around the world have
temperatures for loss measurement, and
established MEPS for transformers to help
the operating frequency.
ensure that efficiency requirements are
guaranteed. Due to the fact that there

3.1.1 TESTING AND ENERGY PERFORMANCE METRICS

The purpose of a test standard is to reliably • Representative: provides robust
and accurately measure the performance of measurement of energy consumption
a product. Officials can then use the results reflective of in-situ energy use under
to determine whether the product meets conditions where the product is used
MEPS. Testing standards are complex and
• Repeatable: gives the same result each
detailed documents developed over many
time a product is tested in the same
years with the input of hundreds of experts
laboratory
from around the world. Test standards,
• Reproducible: gives the same result
like those published the IEC, are updated
each time a product is tested in
regularly and strive to meet the following
different laboratories
objectives:
• Low cost: is not overly expensive or
• Coverage: the testing standard scope
time consuming to conduct, and balances
must cover that of the regulated product
the robustness of the test and cost of
• Metric: the testing standard must testing and
can determine energy consumption,
• Portable (optional): if necessary, should
efficiency or other metric that constitutes
be designed to be applied onsite with
the basis of the regulation
separate energy source generation (e.g.
• Accurate: is designed to minimise large distribution transformers can be
random or systemic errors, establishes difficult to transport to laboratories).
maximum margins of error and avoids the
use of optional approaches

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 ENERGY-EFFICIENT TRANSFORMERS 33

When selecting the energy performance • Minimum efficiency at a defined loading

metric for regulating transformers, point—this metric is the ratio of the
policymakers have a few options. active power in watts delivered by the
Policymakers need to decide which transformer over the load relative to the
approach is best given the conditions of active power in watts drawn by it from
their market. To assist with that choice, four the source. Percent efficiency varies
common approaches are described below: with load and consequently must be
declared at a specified loading point. This
• Maximum losses at no load and maximum
approach is used in Australia and US (See
losses at full load—this metric places
Annex B for slightly different methods for
two constraints on each design and is
calculating percent efficiency between
closest to that specified in the common
the IEC and IEEE)
test standards. It involves ensuring
that a design does not exceed the • Minimum efficiency using peak efficiency

maximum values of no-load losses and index (PEI)—this is an index that was

full load losses in watts, when specified developed by a technical working

separately. This approach is used in China group supporting the EC’s analysis of

and the EU (for distribution and medium- regulations for large power transformers.

power transformers). The equation for peak efficiency

determines the appropriate highest
• Maximum combined losses at a specified
efficiency value of any transformer
loading point—this metric places a single
design at an optimal loading point. This
constraint on the design, measured in
approach was included in the European
watts, which is the sum of the no-load
Ecodesign regulation for transformers.23
losses and the load losses at the specified
loading point. This approach is used in
India and Japan.

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3.1.2 MEPS FOR LIQUID-FILLED TRANSFORMERS

Table 11 offers a summary of liquid- Minimum allowable values of energy
filled distribution transformer efficiency efficiency and the energy efficiency grades
programmes around the world. This table for power transformers). The Chinese
identifies the country/economy, the scope National Institute of Standardisation
of transformers covered, the requirements, is currently reviewing this regulation
whether it is mandatory or not, and the along with their Distribution Transformer
standard or regulation referenced. regulation released in 2013 and will be
updating both and combining them into
In addition to these regulations on
one regulation. In Europe, the regulation
distribution transformers, two economies,
adopted in 2014 applies to both distribution
China and the EU, also have regulations
transformers and large-power transformers
on large power transformers. In China, the
and is under review by the EC.
regulations on large power transformers
were adopted in 2009 (GB 24790-2009:

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Table 11: Summary of coverage of liquid-filled distribution transformer programmes24

COUNTRY / TRANSFORMERS INDICATIVE STANDARD /

MANDATORY?
ECONOMY COVERED REQUIREMENTS REGULATION

1 phase: 10-50 kVA

AUSTRALIA/ Efficiency at Yes,
3 phase: 25-2500 kVA AS2374.1.2-2003
NEW ZEALAND 50% load adopted 2004
Voltage: 11 and 22 kV

1 phase: 5 to 100 kVA Max watts core

Yes, ABNT NBR 5356;
BRAZIL 3 phase: 15 to 300 kVA and coil losses at
adopted 2010 ABNT NBR 5440
Voltage: 15, 24.2 & 36.2kV 100% load

No,
1 phase: 10-833 kVA Efficiency at
CANADA voluntary CSA C802.1
3 phase: 15-3000 kVA 50% load
since 2000

Maximum core
1 phase: 5-160 kVA Yes, JB/T 10317-02
CHINA and coil losses at
3 phase: 30-1600 kVA adopted 2013 GB 20052-2013
100% load

Maximum core
3 phase: 25-40,000 kVA; Yes, EN50588-1:2014;
EUROPE* and coil losses at
Voltage: 24 and 36kV adopted 2014 EU No 548/2014
100% load

Maximum W losses
1 phase: 5 – 25 kVA Yes, IS 1180:2014 &
INDIA at 50% and 100%
3 phase: 16-2500 kVA adopted 2014 GoI Gazette 2968
loading

100-2500 kVA Maximum W losses Yes,

ISRAEL IS 5484
Voltage: 22kV or 33kV 100% load adopted 2011

1 phase: 5-500 kVA

Yes,
3 phase: 10-2000 kVA ≤500 kVA: 40% load
JAPAN adopted 2008, Top Runner
both 50 and 60 Hz >500 kVA: 50% load
updated 2013
Voltage: 3 and 6 kV

1 phase: 5-167 kVA

Efficiency at Yes, NOM-002-
MEXICO 3 phase: 15-500 kVA
50% load adopted 1999 SEDE-1997
Voltage: 15, 25 and 34.5 kV

1 phase 10-100 kVA;

1 and 3 phase; 3.3-6.6kV,
REPUBLIC 100-3000 kVA Efficiency at Yes, KS C4306; C4316
OF KOREA 1 and 3 phase; 22.9kV, 50% load adopted 2012 and C4317
100-3000 kVA &
10-3000 kVA

Yes,
1 phase: 10-833 kVA Efficiency at
US adopted 2010, 10 CFR 431
3 phase: 15-2500 50% load
updated 2016

Yes,
VIETNAM 25-2500 kVA, 0.4-35kV Efficiency TCVN 8525:2010
adopted 2013

* The European regulations apply to all 28 member countries of the EU, as well as the European Free
Trade Area (Norway, Iceland and Liechtenstein) and Switzerland.

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Figure 6 presents a comparison of the various programmes for liquid-filled three-phase

distribution transformers. These data have been normalised to all show 50 per cent
loading, 50 Hz operation and using the IEC definition of rated power (kVA). For the US, the
transformers have also had their load losses corrected to 75°C, making them consistent
with the IEC reference temperature. This figure consists of mandatory, minimum level
performance requirements (i.e. MEPS) from the countries listed in the table above. Thus,
programmes like the high-efficiency performance levels from Australia, Israel, and the
Republic of Korea are not included in this graph.

For the countries shown, the highest efficiency curve for the smaller power ratings (up to
about 50 kVA) is the US DOE MEPS level that took effect in January 2016. Above that size,
the European Tier 2 requirements that take effect in 2021 are the most ambitious. The two
low efficiency curves in the graph are the MEPS in the Republic of Korea and Brazil.

As clearly visible in the Figure 6, the very small power ratings (i.e. below 30 kVA) of the
EC’s Tier 1 MEPS that took effect in 2015 are the lowest, and continue off the scale of the
graph for sizes between 5 and 25 kVA. Due to the fact that the IEC adopted the European
curves, this same issue with very low ambition on small power ratings is also prevalent in
IEC 60076-20. Policymakers may wish to review and make adjustments to these
requirements, given that these small power ratings are popular in small and emerging
distribution networks.

99.6
Figure 6:
Efficiency at 99.4
50% load (IEC)
for three-phase 99.2
liquid-filled
99.0
transformers25
EFFICIENCY (IEC 50% LOAD)

98.8

98.6

98.4

98.2

98.0

97.8

97.6

97.4

97.2
10 100 1,000
kVA RATING

AUSTRALIA MEPS 2004

BRAZIL
CHINA MEPS (GRADE 3)
EUROPE TIER 1 (2015)
EUROPE TIER 2 (2021)
INDIA 3 STAR
ISREAL MEPS
JAPAN TOP RUNNER
REPUBLIC OF KOREA MEPS
MEXICO MEPS
VIETNAM MEPS
US MEPS 2010
US MEPS 2016

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Figure 7 presents the comparison of single-phase liquid-filled transformers regulations

(note: fewer governments regulate these transformers). The US DOE MEPS levels that take
effect in January 2016 are the most ambitious of the MEPS programmes and are very much
in line with Japan’s Top Runner scheme. The requirements for Brazil, China’s JB/T (industry)
standard and the Republic of Korea’s MEPS levels (which start at 100 kVA) are the lowest of
those analysed. The curves generally show that all the countries are clustered between 1.0 to
1.5 per cent of each other on the efficiency scale at any given rated power.

Figure 7:
99.50 Efficiency at
50% load (IEC)
99.25
for single-phase
EFFICIENCY (IEC 50% LOAD)

99.00 liquid-filled
transformers26
98.75

98.50

98.25
AUSTRALIA MEPS 2004
BRAZIL
98.00
CHINA JB/T
97.75 JAPAN TOP RUNNER
REPUBLIC OF KOREA MEPS
97.50 MEXICO MEPS
US MEPS 2010
97.25 US MEPS 2016

97.00
5 50 500
kVA RATING

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3.1.1 MEPS FOR DRY-TYPE DISTRIBUTION

TRANSFORMER
Table 12 offers a summary of the dry-type distribution transformer efficiency programmes
in place around the world. This table identifies the country/economy, the scope of
transformers covered, the requirements, whether it is mandatory or not, and the standard
or regulation referenced.

Table 12: Summary of coverage of dry-type distribution transformer programmes27

COUNTRY/ TRANSFORMERS INDICATIVE STANDARD /

MANDATORY?
ECONOMY COVERED REQUIREMENT REGULATION

1 phase: 10-50 kVA

Efficiency at Yes,
AUSTRALIA 3 phase: 25-2500 kVA; AS2374.1.2-2003
50% load April 2004
Voltage: 11 and 22kV

1 phase: 15-833 kVA

35% loading for C802.2-12/
3 phase: 15-7500 kVA Yes,
CANADA* low voltage (1.2kV) Canada Gazette
Voltages: 20-45, >45-95; April 2012
and 50% for >1.2kV Part II
>95-199kV BIL

Maximum core
3 phase: 30-2500 kVA; Yes,
CHINA and coil losses at GB 20052-2013
Class B, F and H. 2013
100% load

3 phase: 50-40000 kVA Maximum core

Yes,
EUROPE** ≤12kV, 17.5 and 24kV, and coil losses at EN50588-1:2014
2015
≤36 kV 100% load

100-2500 kVA Maximum W Yes,

ISRAEL IS 5484
Voltage: 22kV or 33kV losses 100% 2011

1 phase: 5-500 kVA

Yes,
3 phase: 10-2000 kVA ≤500 kVA: 40% load
JAPAN March 2008; Top Runner
both 50 and 60 Hz >500 kVA: 50% load
updated 2013
Voltage: 3 and 6kV

1 and 3 phase; 3.3-6.6kV,

REPUBLIC 50-3000 kVA Efficiency at Yes,
KS C4311
OF KOREA 1 and 3 phase; 22.9kV, 50% load July 2012
50-3000 kVA

1 phase,
LV, 25-333 kVA
3 phase,
35% loading for
LV, 30-1000 kVA
low voltage (LV) Yes,
1 phase,
US (<600V) and 50% Jan 2010; 10 CFR 431
MV, 15-833 kVA
for medium voltage revised Jan 2016
3 phase,
(MV)
MV, 15-2500 kVA
MV: 20-45kV, 46-95,
>96kV BIL

* Please note that Canada (Natural Resources Canada) is in the process of updating its MEPS for dry type transformers.
The update is part of Amendment 14 to the Energy Efficiency Regulations.
http://www.nrcan.gc.ca/energy/regulations-codes-standards/18468

**The European regulations apply to all 28 member countries of the EU, as well as the European Free Trade Area
(Iceland, Liechtenstein, and Norway) and Switzerland.

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Figure 8 offers a comparison of the energy efficiency programmes reviewed for medium-
voltage, three-phase dry-type distribution transformers. The data has been normalised to
show 50 per cent loading, 50Hz operation and using the IEC definition of rated power (kVA)
and efficiency. Due to the impact of insulation on the performance of a dry-type transformer,
when preparing this comparison, transformers with similar primary voltages and insulation
ratings were included to the greatest extent possible. Brazil, Mexico, India, and Vietnam do
not have efficiency programmes for dry-type transformers; therefore, these countries are not
included in this section of the report.

99.50 Figure 8:
Efficiency
PERCENT EFFICIENCY (IEC, 50% OF RATED CAPACITY)

programmes
99.00
at 50% load
for three-
phase dry-type
98.50
distribution
transformers28
98.00
Note:
AUSTRALIA MEPS 2004 For Canada, the
CANADA MEPS dry-type MEPS
97.50 CHINA MEPS (GRADE 3) regulations
EUROPE TIER 1 (2015) extend to
EUROPE TIER 2 (2021) 7,500 kVA.
97.00 ISREAL MEPS
JAPAN TOP-RUNNER
REPUBLIC OF KOREA MEPS
96.50 US MEPS 2010
US MEPS 2016

96.00
10 100 1,000 10,000
kVA RATING

Figure 8 efficiency curves show that all the countries are clustered together within
approximately 0.5 per cent on the efficiency scale at any given power rating (kVA). The
slope of the curves is generally consistent as well, although the EC’s Tier 1 and Tier 2
appears to have a much steeper slope below 100 kVA and then goes off the chart below
50 kVA. As stated above for the liquid-filled transformers, the fact that the IEC adopted
the European curves, this same issue with very low ambition on small power ratings is also
prevalent in IEC 60076-20. Policymakers may wish to review and make adjustments to
these requirements, given that these small power ratings are popular in small and emerging
distribution networks.

The Republic of Korea has the lowest MEPS requirements in dry type, as is the case with
liquid filled; however, the Republic of Korea’s level of ambition is not as low on the dry type
relative to the other countries as it is for the liquid filled. The highest level of ambition in
MEPS in the above graph is the Japanese Top Runner programme. The new US DOE MEPS
that take effect in 2016 are approximately in the middle of all the curves presented. Although
difficult to see due to the superposition of lines, the Canadian, Israeli, and US DOE 2010
MEPS are all approximately the same.

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3.2 HARMONISATION OF REGULATIONS

AND STANDARDS AND THE IEC
Harmonisation of energy performance and • adopting a common set of upper
test procedures is a means of facilitating thresholds that can be used for market
technology diffusion and trade objectives. pull programmes such as labelling and
Harmonised test methods encourage trade, incentive schemes and
conformity assessment, comparison of
• faster and less expensive testing—for
performance levels, technology transfer and
compliance and other purposes—as
the accelerated adoption of best practice
harmonised testing creates a larger
policy. For example, if energy efficiencies
choice of laboratories that can conduct
are used internationally in performance
product tests.
schemes, and if transformers are to be
For manufacturers, having one harmonised
imported/exported, it is necessary to specify
test method with specified measurement
the measurement uncertainty levels of test
uncertainties used by markets around the
methods to ensure that the manufacturer,
world will reduce testing costs associated
the customer and the energy regulator
with demonstrating regulatory and/or
all get the same result when testing
product labelling compliance. In an ideal
distribution transformers. Both governments
world, manufacturers would conduct
and manufacturers stand to gain from the
the testing and the result would be
harmonisation of testing methods. Benefits
universally accepted by these markets as
to governments include:
being accurate and representative of the
• lower development costs for preparing performance of their product. A harmonised
a test method test method also enables them to look

• comparative test results for products ahead to longer-term rewards for innovation

sold domestically and in neighbouring around advanced product designs that will

economies be more energy-efficient and have lower

life-cycle costs for consumers. Having a
• the ability to transpose and adapt
consistent test method enables countries
analyses from other markets to
to establish a common set of efficiency
determine appropriate domestic
thresholds, which would not only be broad
efficiency requirements
enough to encompass all current market
• adopting minimum performance circumstances, but which also include
thresholds and applying them as a aspirational efficiency thresholds as pointers
starting point in a domestic regulatory for future market development.
programme

3.2.1 IEC 60076 TEST METHODS

When setting MEPS, most economies or references IEC 60076 are: Australia, Brazil,
around the world base their test methods China, EU, India, Israel, Japan, New Zealand,
on IEC 60076. In some cases, there are the Republic of Korea, and Vietnam. The two
minor modifications that have been made major economies who deviate from using
due to specific or unique requirements. The IEC are Canada and the US.
economies that fall into this group that uses

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The set of international standards covering transmission and distribution. Table 13

power transformers is published under IEC lists the main standards documents the
60076, Power Transformers, and is prepared Committee has published. The IEC standards
and maintained by IEC Technical Committee addressing specifically power transformer
14. The Committee covers standards for tests (PTT) and power transformer energy
power transformers, tap changers and performance related tests (EPT) are
reactors for use in power generation, highlighted in the EPT/PTT column.

Table 13: List of standards for IEC 60076 power transformers

IEC STANDARD TITLE OF IEC STANDARD NOTES

IEC 60076-1 ed3.0 (2011-04) Part 1: General EPT

IEC 60076-2 ed3.0 (2011-02) Part 2: Temperature rise for liquid-immersed transformers EPT

Part 3: Insulation levels, dielectric tests and external

IEC 60076-3 ed3.0 (2013-07) PTT
clearances in air

Part 4: Guide to the lightning impulse and switching

IEC 60076-4 ed1.0 (2002-06) PTT
impulse testing- Power transformers and reactors

IEC 60076-5 ed3.0 (2006-02) Part 5: Ability to withstand short circuit PTT

IEC 60076-6 ed1.0 (2007-12) Part 6: Reactors

IEC 60076-7 ed1.0 (2005-12) Part 7: Loading guide for oil-immersed power transformers

IEC 60076-8 ed1.0 (1997-10) Part 8: Application guide

IEC 60076-10 ed1.0 (2001-05) Part 10: Determination of sound levels PTT

IEC 60076-10-1 ed1.0 (2005-10) Part 10-1: Determination of sound levels - Application guide

IEC 60076-11 ed1.0 (2004-05) Part 11: Dry-type transformers EPT

IEC 60076-12 ed1.0 (2008-11) Part 12: Loading guide for dry-type power transformers

IEC 60076-13 ed1.0 (2006-05) Part 13: Self-protected liquid-filled transformers

Part 14: Design and application of liquid-immersed power

IEC 60076-14 (2013-09)
transformers using high-temperature insulation materials

IEC 60076-15 ed1.0 (2008-02) Part 15: Gas-filled power transformers

IEC 60076-16 ed1.0 (2011-08) Part 16: Transformers for wind turbine applications

IEC 60076-18 ed1.0 (2012-07) Part 18: Measurement of frequency response PTT

IEC/TS 60076-19 ed1.0 Part 19: Rules for the determination of uncertainties in the
EPT
(2013-03) measurement of losses in power transformers and reactors

IEC/TS 60076-20:2017 Part 20: Energy efficiency EPT

Part 21: Standard requirements, terminology, and test code

IEC 60076-21 ed1.0 (2011-12)
for step-voltage regulators

A brief description of each of the above standards from IEC 60076 can be found in Annex C
of this report. All of these standards are available for purchase from the IEC webstore.29

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3.2.2 IEC RECOMMENDED EFFICIENCY LEVELS

The IEC convened a technical committee to develop a specification providing guidance on
energy efficiency levels for power transformers. The published specification, IEC TS 60076-
20:2017(E), states its objective as: “to promote a higher average level of energy performance
for transformers” due to the “need for energy saving and reduction of the emission of
greenhouse gases.”

The IEC specification proposes two methods of defining an energy efficiency index
and three methods of evaluating the energy performance of a transformer:

• the Peak Efficiency Index (PEI) incorporating a Total Cost of Ownership approach

• the no-load and load losses at rated power for rationalisation of transformer cores
and coils for transformers generally produced in large volumes; and

• the efficiency at a defined power factor and particular load factor (typically at
50 per cent).

In the technical specification30, the IEC provides two levels of recommended requirements
for each of these three methods of evaluating the energy performance of a transformer.
IEC Level 1 is for a modest level of energy performance and IEC level 2 establishes a more
ambitious level. Importantly, IEC notes that the level of ambition chosen in a particular
country should be economically validated for the intended application.

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4. SUPPORTING POLICIES

WHAT? A brief discussion of product labelling, communication, and education

programmes. Product labelling explores the different label types, including
endorsement and comparative. The communication discussion focuses on
stakeholder empowerment through raising awareness and disseminating
information.

The promotion of more energy-efficient transformers is supported by a

number of policy instruments and programmes around the world. Examples
of these policy instruments include:
• Minimum Energy Performance Standards (MEPS) – (see previous chapter)
• Voluntary or mandatory product labelling
• Financial incentives, subsidies and tax breaks – (see next chapter)
• Communication and educational materials
• Tools including on-line calculators and smart-phone apps for buyers
• On-site metering and audits
• Technical support and advice on procurement
• Support for R&D and demonstration projects

WHY? Provides information on supporting policies, the second part of the U4E
Integrated Policy Approach, which is critical to understanding and securing
the support required to accelerate the market penetration of energy-
efficient transformers.

NEXT? Some key questions to keep in mind:

• What labelling schemes exist or have been tried in my country in the past?
• Which type of label will be the most effective way to communicate
appropriate choices to transformer specifiers and purchase decision
makers?
• Can we adopt existing labelling schemes with proven validity and
effectiveness?
• How do we secure the correctness of the claims on the label or
compliance to the criteria for affixing the label?
• Has our country convened an energy efficiency communications
campaign in the past? If so, what worked and what didn’t work?
Are there lessons to be learned?
• Who would lead a national communications campaign in our country?

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4.1 LABELLING
Product labelling is one of the most direct and effective means of delivering information
about energy performance. When implemented well, it can be one of the most
cost-effective energy-efficient policy measures. For transformers, there are most often
two main groups of labels – endorsement labels and comparative labels:

• Endorsement - For products that meet or exceed a specified set of criteria; recognises
premium models in the market (see Figure 9)

• Comparative – Facilitates comparison between products on energy or other performance

aspects in a discrete set of categories and categorical comparative which is similar to
comparative but replaces the A to G or Star rating with a continuous sliding scale.

Figure 9:
Example of a
distribution
transformer
label from
India, Bureau
of Energy
Efficiency

In addition to the type of label employed, transformer labels can be either mandatory or
voluntary. For mandatory labels, a government requires that all manufacturers and importers
apply the label to the product and/or have it clearly visible for on-line sales. Voluntary labels
can be administered by governments or other entities and participation in the programme
is optional.

Energy labelling schemes can be beneficial for some commercial or industrial products.
They can have a significant impact accelerating the market penetration of energy-efficient
models. Defining energy classes for power and distribution transformers is straightforward
compared to other industrial and custom-built products and would enable governments,
programme designers and other transformer specifiers to more easily identify top‐
performing transformers in their markets. Table 14 identifies a number of economies that
have energy labelling schemes for transformers. Both endorsement and comparative labels
are in place, some voluntary and some mandatory.

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Table 14: Countries that have labelling programmes for power transformers31

COUNTRY ENDORSEMENT LABEL COMPARATIVE LABEL TYPE OF LABEL

CHINA x x Voluntary & Mandatory

INDIA x Mandatory

JAPAN x Mandatory

MEXICO x Voluntary

REPUBLIC OF KOREA x Voluntary

US x Voluntary

In general, for labelling schemes to be successful, they should be designed for the needs,
benefit, and convenience of consumers. It is advisable to conduct appropriate consumer
research and convene focus groups when designing labels. It can be beneficial to adopt an
existing labelling scheme with proven effectiveness. This would help avoid a proliferation
of different labels that distract or confuse customers and reduce compliance costs and
complexity for manufacturers and importers. Product labels should be easy to understand.

The success of any labelling scheme depends on its credibility. Whether the public trusts the
information on the packaging is crucial. Less reputable companies may be tempted to abuse
the label by claiming compliance while being unable or unwilling to invest in the necessary
quality measures.

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4.2 COMMUNICATION AND EDUCATION

Awareness-raising campaigns support good factual enough to be compelling but also
governmental policies and programmes. user friendly and simple to be memorable.
Effective communication and education Some successful energy efficiency
campaigns should gain the active support communications campaigns have focused
of the key stakeholders. They should focus on the following benefits and attributes:
on the range of benefits and outcomes that
• Monetary savings
end users will enjoy as a result of seeking
out and selecting higher efficiency • National pride
transformers. If end users can feel good • Energy efficiency and energy savings
about the outcome, they are more
• Convenience (long-life)
motivated to take an interest in seeking
out information and to understand why it • A simple and hassle-free switch
is meaningful to their purchasing decision. • Environmental responsibility
Dry, factual messages will have less impact
• Political and economic advantages and
than positive, beneficial statements.
• Energy security and reliability.
Programme implementers should avoid
developing complicated or technical text,
graphs or charts. Messages should be

4.2.1 DESIGNING A COMMUNICATIONS CAMPAIGN

The success of a communications campaign Communication plans should be flexible.
depends on its design. Objectives should They should allow for adjustments based on
be established in line with policy goals. The monitoring results and any circumstantial
objectives should be specific, measurable, changes. Project-management skills
attainable, relevant and time bound are needed to successfully manage the
(SMART). They determine the choice of launch and ongoing operation of the
communication tools and messages as well campaign. Diagnostic skills are used to
as evaluation parameters. recognise whether the campaign fulfils its
expectations. If the campaign falls short
The communication messages should
of its goals then its problems must be
be simple and relevant to the audience.
addressed.
Messages should make the desired
behaviour attractive and easy and should Identifying the target audience for a
clearly demonstrate the benefits to end campaign is critical. This helps in
users. Usually, monetary savings are a strong tailoring the messaging. Table 15 provides
motivator in all communications campaigns information on the communication
about efficiency, but in some countries interests of the different target audiences.
messages that tap into a sense of national It includes their primary interests and
pride may resonate as strongly. their areas of involvement with respect to
energy efficiency.

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Table 15: Communication campaign stakeholders and areas of interest and involvement

TARGET AUDIENCE PRIMARY INTERESTS AREAS OF INVOLVEMENT

PUBLIC INSTITUTIONS • Reduce need for new power • Policy formulation, legislation, funding
• Political executive and plants, reduce GHG emissions, and human resource support for energy
legislature while improving the national efficiency market transformation
• Regulatory bodies economy programme
particularly electricity • Protect domestic industry and • Support to regulatory initiatives and
regulators jobs while respecting trade policy implementation
• Standards bodies obligations and opportunities. • Evaluation and monitoring of
• Accreditation bodies • Ensure market transformation programme against established targets
• Enforcement officials to energy-efficient products • Public procurement policy
• Customs authorities • Standards and regulations
• Incentives and subsidies
• Testing lab accreditation
• Product registration
• Compliance testing and enforcement
• Communication campaigns

POWER UTILITIES • Increase energy access • Transformer maintenance programmes

• Improve power quality and • Total cost of ownership (i.e., life-cycle
reliability cost evaluation) when purchasing new
• Lower running costs of the transformers
transmission and distribution • System design taking into account
of electricity efficiency
• Incentive and subsidy programmes for
commercial and industrial facilities

SUPPLY CHAIN • Seek competitive advantage, • Assist regulators in determining level of

• Transformer improved market share ambition and timeline
manufacturers • Minimise costs, seek return on • Upgrade capacities for design,
• Transformer repair new investments manufacture, testing and marketing of
facilities • Be seen as an environmentally energy-efficient transformers
• Industry associations sensitive, responsible • Ensure accurate energy labelling
• Dealers corporate citizen • Act as change agents
• System integrators • Gain public recognition • Facilitate direct and indirect end-user
communication

END USERS • Ensure sustainable corporate • Develop company energy policy,

• Energy performance—financial, transformer-maintenance policy,
• Maintenance managers environmental procurement policy
• Purchasing agents • Reduce costs and improve • Acquire information and develop capacity
• Facility managers productivity to make informed decisions about the
savings associated with a switch to
efficient transformers
• Conduct energy audits

OTHERS • Reliable and affordable • Assist public institutions with the

• Civil society electricity development and implementation of
• Environmental • Clean air, water and soil sustainable appliance policies
organisations • Education and training to • Identify best practices and policies
• Educational institutions understand the implications • Publish formal and informal education
• Research and training of inefficient equipment and and training materials
institutes safety considerations related • Increase awareness about the role
• Media and general to PCBs of transformers and opportunities to
population improve efficiency
• Support for sustainable appliance
policies among general population

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Communications and education programmes can work to promote energy-efficient

transformers in any country. For example, ICA has established, and continues to develop,
an online learning portal that consists of expert lecturers presenting on a range of topics,
including energy-efficient transformers.32

Transformer manufacturers offer some on-line communications tools as well, which promote
the consideration of losses in the design specification of a transformer order. For example,
ABB Transformers offers a total cost of ownership calculator33 which converts cost of no-
load (A-Factor) and load losses (B-Factor) to net present value ($/W). ABB notes that the
greater the net present value, the higher the penalty placed on those specific losses. These
factors are then multiplied by their respective transformer no-load (W) and load losses (W)
and summed together with the purchase price to come up with the total cost of ownership.
When comparing like designs, the offering with the lowest total cost of ownership would
be selected as it would be the most economical when considering purchase price, loss of
revenue and capital investment.

Governments may also choose to raise awareness and have a communications campaign
around the eradication of PCBs. Starting in the late 1920s, PCBs were used as a cooling
fluid in electrical transformers for nearly 50 years because of their electrical-insulating
and fire-retardant properties. However, they have a high environmental toxicity and
represent a highly significant public and environmental health risk. There is still a need to
eliminate old transformers and ensure the environmentally sound disposal of PCBs in large
parts of the world.34

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5. FINANCE AND FINANCIAL

DELIVERY MECHANISMS

WHAT? This chapter addresses topics relating to financing of energy-efficient

transformers, including both sources of financing and implementation
vehicles and mechanisms. Some of the topics covered in this chapter include
overcoming first-cost barriers, traditional and innovative financing mechanisms,
energy service companies, bulk public procurement schemes and electric utility
demand side management programmes.

This chapter is divided into two parts. The first part is a high-level summary
of the sources of funding that countries can access to supplement their own
domestic public and private sector funds. The second part concentrates on the
implementation practices and delivery mechanisms that are driven by financial
incentives to help facilitate successful market transition to energy-efficient
transformers.

WHY? Affordability of efficient transformers can be a significant market barrier. This

chapter addresses how public finance, multilateral development finance and
climate finance, in coordination with the private sector, can help address
this barrier through financial schemes, innovative market delivery and other
mechanisms.

NEXT? Some key questions to keep in mind:

• Which economic policies, regulatory structures and/or financial incentive
programmes could be effective in facilitating market transformation in
our country?
• Which stakeholders should we engage to learn about financing
opportunities, and work with to encourage the creation of new
market-delivery mechanisms?
• What new market-delivery mechanisms could be effective in our country?
• Are there bilateral or multilateral sources of technical assistance, grants
or finance which would stimulate and accelerate the efficient transformer
market?

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5.1 SOURCES OF FINANCE

Enabling a market transition to energy- an overview along with case studies and
efficient transformers often requires policy hyperlinks to various sources of finance for
interventions and financial incentives. energy efficiency projects and programmes
To be successful in achieving market in general.
transformation, countries need to follow an
• Domestic sources of finance—the most
approach that helps in overcoming market
direct way for governments to pay for
and other barriers, increases local investor
energy-efficient transformers marketing
confidence, and mobilises private sector
and communication programmes is to
investments and participation. Governments
allocate public funds from the domestic
can achieve this objective by promoting
budget. Another option, commonly
an enabling economic environment that
used in the US is for electric utilities
facilitates the purchase and installation of
to promote them through incentives
energy-efficient transformers.
offered to their industrial and commercial
Initial higher cost of energy-efficient customers under traditional Demand Side
transformers could make them unaffordable Management (DSM) schemes.
for some utilities and end-use industrial
• Private sector finance—financial
and commercial customers in developing
institutions are starting to understand
countries. Overcoming first-cost barriers to
the compelling aspects of energy
market adoption requires the involvement
efficiency and are developing suitable
of policy makers and institutions and
financing mechanisms. The economics
the identification of financial resources
and financing of efficient transformers
to support a market shift to efficient
is attractive and offers an incentive
transformers.
to invest in energy efficiency that is

Public finance can be used in a manner recovered through energy savings.

that maximises the leveraging effect of Examples of private sector finance

private sector capital. Advanced planning that could be used to help support the

and blending of financial resources with purchase of transformers include bank

appropriate mechanisms is essential to loans, third-party financing, performance

managing the financial ecosystem, including contracting through ESCOs and green

risk-sharing and cost-sharing arrangements. investment funds.

In this context, multilateral finance can • Sources of development finance—some

further complement public finance sources developing countries that do not have
in helping to scale-up investments and adequate public finance and resources
expand the impact in the area of energy- to support a technology phase-out or
efficient transformers. Such funding can largescale deployment programme, may
be applied to develop and strengthen seek nondomestic sources of finance,
the regulations and standards and their such as the Asian Development Bank,
enforcement, as well as supporting policies the European Bank for Reconstruction
like promotional schemes and rebates to and Development, and the World
industrial and commercial customers, and Bank. Nondomestic sources of finance
other financial incentive mechanisms. can provide concessional funding to
governments (including soft loans and
Several sources of finance exist to help
guarantees) to help trigger market
support energy efficiency programmes,
transformation through large-scale
particularly for resource-constrained
deployment programmes, along with
countries. This section identifies some of the
initiating phase-out programmes, raising
sources. Readers are directed to the “Policy
investor confidence, and attracting
Fundamentals Guide”, which provides
private investors.

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• Climate financing—financing mechanisms include the GEF, Green Climate Fund,

designed to reduce greenhouse gas Clean Development Mechanism,
emissions often provide grants and Nationally Appropriate Mitigation
low-cost loans, which can be blended Actions and Climate Investment Funds.
with other sources of finance to help These financing mechanisms require
scale up the implementation of energy robust measurement and verification of
efficiency programmes, including for greenhouse gas emissions reduction in
energy-efficient transformers. Examples addition to that of energy savings.
of climate financing that could be
applied to energy-efficient transformers

CASE STUDY: Madhya Pradesh Energy Efficiency Improvement

Investment Programme, India

In Madhya Pradesh, where 70 per cent of the population live in rural areas, the aging and
overloaded distribution lines and transformers were incurring excessive technical losses
and delivery of poor quality power. To ensure good quality 24-hour power supply to rural
households, the government of Madhya Pradesh has been undertaking a distribution
improvement programme that aims to establish separate feeders for agricultural pumps
and households, higher-voltage distribution systems, installed meters and a strengthened
33 kV network.

The Asian Development Bank invested in the improvement of the operational efficiency
of the electricity distribution system in Madhya Pradesh, including in energy-efficient
electricity distribution transformers across 15 project districts. The total budget for this
completed project was $200 million.

For more information click here.

CASE STUDY: Madhya Pradesh Power Sector Reform, India

The UK Department for International Development (DFID) provided technical assistance

of £19.7 million to the Energy Department, government of Madhya Pradesh and the power
utilities in generation, transmission, and distribution. The objective is to support policy
and institutional reforms to make the power sector viable in the medium and long-term
by ceasing to be a drain on the state finances and to enable the state to spend more on
social sectors.

DFID support includes: (a) distribution loss reductions; (b) energy efficiency and Demand
Side Management; (c) private participation in generation; (d) distribution franchisee
Public Private Partnerships (PPPs); and (e) a financial restructuring plan. The project ran
from 2005-2012 and had a financial restructuring budget of £5.5 million.

For more information click here.

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5.2 FINANCING AND DELIVERY MECHANISMS

Examples of financial mechanisms that are often used for the purchase of
transformers include:

• Utility regulatory frameworks

• Energy Savings Performance Contracting through ESCOs

• Public–private partnerships

5.2.1 UTILITY REGULATORY FRAMEWORKS

Losses in the transmission and distribution and of course, improving the efficiency
system need to be covered by additional of transformers will have a positive impact
generation, which costs money and can put on losses.
a strain on already limited generating assets.
Regulators should ensure that purchasers
The objective of progressive regulatory
are not unintentionally penalised for
frameworks is to find an optimal economic
buying more expensive but more efficient
balance that protects the interests of the
transformers under any price control
end-use customers while ensuring the
formula. Utilities and large facilities
utility can benefit from energy efficiency
owners should be able, encouraged,
investments in its own network. If network
and incentivised to buy the most
operators are given sufficient incentive,
economically efficient transformers
they will evaluate the costs and benefits
using a cost of losses capitalisation
of reducing losses and take action to
formula that properly reflects the cost of
optimise the level of losses in the most
electricity used to supply the losses.
efficient way, including the purchase of
energy-efficient transformers. This cost should also take account of the
emissions and environmental impacts
Other regulatory and operational issues,
of the electricity used over the lifetime
such as energy efficiency schemes,
of the transformer. The incentive should
infrastructure planning, and network
operate irrespective of whether the utility
reconfiguration can also have an impact on
is responsible for buying or generating the
the treatment of losses. Any measures or
electricity needed to supply system losses
actions focused on reducing or smoothing
and would apply even when MEPS are
the demand for energy, (re)locating
in force.
generation plants closer to demand,
upgrading the voltage level of the network

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CASE STUDY: Financial Incentives 2007-2014, Italy

Resolution ARG/elt 348/07 of the Electricity and Gas regulatory measure in Italy defined
the setting for the remuneration of investments made in the distribution network. The
rate of return on capital net invested was fixed at 7 per cent a year. When this return
on investment was applied to transformers in substations it resulted in new low loss
transformers being included. The measure resulted in more energy-efficient transformers
being installed and all transformers of this kind ensured the dimensional requirements of
existing substation specifications.

Initially, the Authority’s resolution only planned an incentive for the replacement of
existing transformers, but subsequently, with Resolution ARG/elt103/10 of 30 June 2010,
the language was amended to: ‘Investment for replacement of existing transformers MV/
LV in substations of transformation with new low loss transformers.’ The incentives for
electricity distributors were extended also to the installation of new low loss transformers
in both existing or newly built substations.

These incentives helped accelerate the transition to the subsequent adoption of

European Regulation EU No 548/14 and were cancelled after the regulation took effect.

5.2.2 ENERGY SAVINGS PERFORMANCE

CONTRACTING THROUGH ESCOs
An ESCO is a business providing a broad for any efficiency improvements that are
range of turn-key energy solutions which undertaken. The client assumes the credit
can include upgrades to electrical systems in risk, as their credit is used to secure a loan
commercial buildings and industrial facilities to pay for the retrofit. The client repays the
as part of a larger energy efficiency scheme. loan and the services of the ESCO through
ESCOs conduct energy audits to identify the money that is saved on their utility bill.
cost-effective opportunities for refurbishing
In the case of a shared savings model, the
or replacing equipment and improving
ESCO borrows from a bank or invest its
operating practices. ESCOs often act as
own funds, assuming both the credit and
project developers for a comprehensive
technical risks. The guaranteed savings
range of energy efficiency measures and
model enables more comprehensive
assume the technical and commercial risk.
projects and a greater number of project to
ESCOs that use a guaranteed savings be undertaken since the credit of each client
model provide a guarantee on the energy is leveraged, rather than relying on the credit
savings (they assume the technical risk) of the individual ESCO.

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5.2.3 PUBLIC–PRIVATE PARTNERSHIP FINANCING

AND DELIVERY MODEL
PPP are mechanisms enabling governments The PPPs offer a mechanism under which
to fund and operate services through they can take-on large-scale projects with
contracts with private companies. They private-sector financing and management
come in a wide variety of structures and expertise, while retaining management
formats. Finance can be sourced from either control and key decision powers. While this
the public sources or the private sector has not been used for transformers, this
or both, depending on the design of the is a potential mechanism that might be
partnership contract. considered.

The private sector brings its implementation According to the European Investment Bank,
expertise to a project usually considered PPP transactions in the EU stood at €15.8
within the public domain, and assumes billion in 2010. About 1,400 deals have been
much of the financial or performance risk. implemented over the past two decades.

5.3 UTILITY PURCHASING PRACTICES

When purchasing distribution transformers, The whole life costing model is intended
utilities will often use a purchasing practice to attribute a present value to the whole
referred to the total cost of ownership life costs of operating the transformer in its
or whole life costing, which involves the proposed location. To achieve this, the loss
capitalisation of losses. This approach to factors typically developed for an annualised
specifying and purchasing transformers is cost method can be used as inputs to
used to minimise the total investment over a discounted present value calculation
the lifetime of a transformer, enabling a method looking into the future to develop
utility to maximise its energy savings at the whole life costing model. However, each
the lowest cost. Loss capitalisation takes purchaser may prefer different approaches
time to determine the correct factors to based on historical methodologies.
apply but helps provide answers to the
By using this whole life costing approach,
following questions:
future changes such as load growth
• At what cost should the lost energy or reductions can be factored into the
be evaluated? calculation. In this method the discounted

• What is the load factor that should be present value of the cost of energy

applied? consumed in transformation throughout

the life of the transformer is added to the
• What is the internal rate of return that
purchase price. The lowest total cost being
needs to be applied to any discounting?
the preferred option, which may not be the
• What interest rates should be applied to lowest purchase price.
the capital purchase?
When purchasing a transformer, a utility will
The biggest issue with loss capitalisation
include a statement expressing its valuation
is that it needs to look at the life of the
of no-load and load losses. These two
transformer that typically exceeds 25 years
valuations are expressed on a cost per Watt
and represents the length of time that
basis, where the cost is in the same currency
utilities could use for discounting the asset
as the purchase order. For instance, in the
values in their accounts.
US, a utility would specify its no-load and

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load-loss valuation in dollars per Watt ($/W). In other words,

The transformer manufacturer then uses
Valuation of core loss = A x core loss (W)
this information in their design process and
Valuation of load loss = B x load loss (W)
prepares a design that trades off higher first
cost against lower lifetime operating cost. Where:
The higher the valuation of losses, the more
A = equivalent first cost of core losses
efficient a transformer design.
($/W)
When assessing the various bids, the B = equivalent first cost of load losses
following equation is used by the utility for ($/W)
selecting the lowest total cost of ownership
for the transformer designs specified: Utilities around the world have developed
and customised ways to calculate the
Total cost of ownership = valuation coefficients, A and B.
Purchase Price + Valuation of Core Loss
+ Valuation of Load Loss The following formula is used to calculate
the net present value factor which is then
In this equation, the purchase price applied to the two annualised loss factors to
represents what the manufacturer would obtain a whole life cost estimate.
charge the utility for the purchase. This
price is a reflection of the materials and C = [a x (1 + b)n +b – a] / [(1 + b)n – 1]
construction techniques, and thus more (Eqn. 4-3)
efficient transformers will tend to have Where:
higher purchase prices.
C – is the cost per $ annual cost of losses
The valuation of core loss is a calculation a – is the cost of capital borrowed
that assigns a value to each watt of loss in
b – is the interest rate payable on deposits
the core of the transformer. In other words,
if core losses are valued at 5 $/W and a n – is the expected life of the transformer
transformer design has 100 W of core loss, If it is assumed that the cost of a loan is 7.5
then the valuation of core loss entered into per cent, the interest payable on deposits is
the total cost of ownership calculation will 5 per cent and the life of the transformer is
be $500. Adding valuation of losses allows taken as 40 years then C equals 0.0833.
the overall design assessment result in the
most cost-optimised purchase decision for The capitalised value of the losses over the
the utility. It serves to offset the higher first life of the transformer as detailed in the
cost of an energy-efficient design due to the equation (2) is then as follows:
fact that lower losses associated with the
A = Total cost of No load loss is then
more efficient design will result in a lower
876/C = 876/0.0833 = $10,516/kW
operating cost associated with core losses.
B = Total cost of Load loss is then
The valuation of load loss is very similar 181.3/C = 181.3/0.0833 = $2,176/kW
to that of valuing core loss. Each watt
of load loss is multiplied by the value of The estimated whole life cost for assessment
the load losses to arrive at a total cost of the designs is the values of no-load and
associated with the load loss that should be load losses multiplied by the above A and B
incorporated into the purchasing decision. and added to the purchase price.

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Total whole life cost of transformation is Any expected load increase to which the
then determined as follows: transformer will be subjected through its life
can be considered as part of this analysis.
Total cost of ownership ($) =
The expected life of the transformer and the
purchase price ($) + (10,516 x no load loss)
cost of financing may be treated in more
+ (2,176 x load loss)
detail to also arrive at the figures.
As these methods make some basic
There are many different methods that can
assumptions of future costs and operating
be used in making a discounted cash flow or
data, some degree of sensitivity analysis may
net present value calculation and the above
be required to optimise the formula prior to
example uses only one of these. Another
issue as part of a contract. Factors that are
approach, the annualised cost of capital, is
uncertain over the life of the transformer
shown in Annex D.
include the demand profile, interest rates,
cost of capital and energy costs.

The example above gives a single cost for

the energy consumed. There is no reason
why the two loss factors could not have
different costs attributed to them.

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6. MARKET MONITORING, VERIFICATION

AND ENFORCEMENT

WHAT? Clarifies the critical importance of MVE to ensuring a level playing field
so businesses comply and consumers benefit. Highlights the central
importance of government in establishing and maintaining a robust
market-surveillance programme.

WHY? Just as police enforce the law and prevent crime, national governments
must work to monitor, verify and enforce regulations and standards to
ensure the policies and programmes created to transform their respective
markets are followed. Robust MVE schemes are absolutely fundamental to
achieving successful policy-driven market transformation outcomes.

NEXT? Some key questions to keep in mind:

• How can market surveillance improve the effectiveness and impact
of the regulations?
• Do we have the legal framework around which to structure a complete
MVE scheme?
• Which government ministries oversee product safety standards and
requirements? Could their function be expanded to include additional
regulations and standards enforcement?
• What are the costs and benefits of running a market surveillance
programme?
• Can we simplify the implementation, by adopting existing international
regulations, standards and MVE schemes such as the IECEE CB-scheme?

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MVE is an indispensable component of the U4E Integrated Policy Approach. It revolves

around monitoring markets, verifying compliance and enforcing the regulation on companies
that fail to meet them. Figure 10 highlights the fundamental aspects of MVE.

Figure 10:
Fundamental
aspects of the
MVE process
MONITORING ENFORCEMENT
Collecting information VERIFICATION Acting in response to
about compliance noncompliance offences
Verification testing
with the programme with a suite of timely
or processes to
requirements through and appropriate actions:
determine whether
market surveillance build on rigorous testing
a product performs
activities to seek out and yielding a high return
according to its
potential cases of in terms of market and
claimed energy
noncompliance for consumer protection.
performance value:
further verification
often a third-party
testing.
test.

Effective MVE schemes ensure a level playing field. Manufacturers comply with standards
and labelling programmes, enabling consumers and companies alike to benefit. Considering
the three main stakeholders involved, industry, consumers and governments, MVE offers
benefits to all, as depicted in Figure 11.

Figure 11:
MVE benefits
to stakeholders
CONSUMERS
Receive the
expected product
at time of purchase;
Provide a level truth in labels, truth
playing field, a in advertising
fair market that
encourages
investment and
technological
innovation

BUSINESSES POLICY MAKERS

Assess S&L programme

effectiveness; achieve
key environmental
and economic
policy objectives

The goal of MVE is to ensure the integrity of market-transformation programmes. It does this
by minimising the negative costs associated with the sale of noncompliant products after
the effective date of a regulation.

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6.1 LEGAL AND ADMINISTRATIVE FRAMEWORK

A strong foundation within the national The operational framework within which
legal framework is crucial for an MVE the enforcement authority operates should
scheme. This foundation should encompass be transparent. This improves compliance
legal authority, enforcement powers and rates through clear communication and
penalties. The legal framework for an energy understanding of the MVE scheme.
efficiency enforcement regime will depend
MVE schemes for transformers may also
on the national governance structure, on
need to address PCBs, which were used in
existing legislation and on the infrastructure
the past as a cooling fluid in some electrical
and design of the MVE process.
transformers because of their electrical-
Legal frameworks must clearly delineate insulating and fire-retardant properties.
responsibilities between the different PCBs have a high environmental toxicity
government agencies that implement and represent a very significant public
MVE nationally, including the agency and environmental health risk. Virtually all
responsible for coordinating the MVE governments have signed the Stockholm
scheme, and other agencies such as convention to eradicate PCBs from their
customs, standards and metrology that will markets by 2025.36 Part of the responsibility
have central roles. The framework could of the national MVE scheme may include
bestow the authority for an agency to issue ensuring that PCBs are taken out of service
fines and block the sale of noncompliant and disposed of safely.
products from entering the market.

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6.2 FINANCING MONITORING, VERIFICATION

AND ENFORCEMENT SCHEMES
The costs of a national MVE scheme budget. This does not need to be the only
vary. They depend on the scope of the source of funding. Cost-recovery from
programme as well as local or regional suppliers can also be another source of
factors, such as labour and services costs. funding, with many programmes around the
When planning how to allocate funding world introducing cost-recovery elements to
for an MVE scheme, the managing agency their schemes. Cost recovery can be partial
typically takes into account the relative scale or complete and can be achieved through,
of the harm caused (including the cost of for example, registration fees, verification
wasted energy, loss of consumer confidence testing fees, and enforcement fines.
and the frequency of noncompliance).
Many programmes collect funds from
More resources are allocated toward suppliers during registration. This may take
addressing cases of noncompliance. the form of an annual payment, a one-off
They have the greatest impact and occur payment for a specified period or a higher
frequently. Budget allocation should be an initial fee followed by a smaller annual
evidence-driven, risk-based process that is payment. Registration fees are generally
transparent and defensible. levied on product models rather than
brands or suppliers, as this best reflects
The areas of an MVE scheme which incur
the costs involved.
costs are listed below:

• Establishment costs—setting up a main An increasing number of programmes

office and possibly field offices with new require that products have third-

equipment party certification. This comes from an

independent body as a condition of
• Staff costs—hiring and training/capacity
entry to the programme. While this is not
building the staff, covering the key areas
cost-recovery per se, it can reduce the
of administration, investigation and
costs of the programme. This is because
management, and in specialist areas such
the system administrator is in effect
as customs officials and test labs
delegating some of the responsibility for
• Communications—informing the market ensuring products meet the necessary
about the regulations, the MVE scheme requirements to third parties that are paid
and enforcement proceedings, as by the product suppliers.
deterrence is highly cost effective; and
Support for MVE schemes can also be
• Legal and enforcement action—the MVE
derived from stakeholders in the market.
agency needs to have (and be seen to
Collaboration and cooperation with industry
have) sufficient funding to use its full
or civil society may provide additional
range of legal powers.
resources. Including through joint testing
The success of an MVE scheme depends on programmes, by providing expertise,
identifying a secure and sustainable source supporting data collection and sharing, or
of funding that will be maintained for a given even providing testing facilities. Prior to
market. Governments must assess what engaging in this form of collaboration, the
is equitable and feasible and construct a goals of cooperating need to be established.
solution that will fit within their framework. Some contributions may not be admissible
Robust MVE schemes require good market as a foundation for legal action. There may
awareness, sampling, and testing. be a conflict of interest in using industry
funding to legally prove noncompliance of
The most common source of funding is
competitors in the market.
the government’s own general operating

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6.3 COMPONENTS OF A ROBUST MVE PROGRAMME

UN Environment has published a guidance transformers. It provides a practical resource
note on the development and maintenance
37
for those developing a market baseline
of market baselines and market-monitoring for the first time, or those who are looking
activities. The note is aimed at policymakers to update existing baselines for market
who wish to establish or update policies monitoring purposes.
to facilitate the transition to efficient

CASE STUDY: Industrial and Tertiary Product Testing and Application

of Standards (INTAS) Project, Europe

The INTAS project started in March 2016. It addresses the need to support European
Market Surveillances Authorities (MSAs) deliver compliance with Ecodesign requirements
for large industrial products including transformers.

INTAS provides technical and cooperative support as well as training activities to MSAs
in charge of enforcing Ecodesign regulations. INTAS also supports industry to be sure
of what their obligations are under the Ecodesign Directive and to deliver compliance in
a manner that will be broadly accepted by MSAs. By doing so, INTAS fosters a common
European approach to the delivery and verification of compliance.

For more information click here.

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6.3.1 PRODUCT REGISTRY SYSTEMS

Product registration systems offer an Governments set up product registration
initial compliance gateway. Suppliers systems via legislative and regulatory
register compliant products with the authority. Mandatory registration systems
regulatory authority. The registration are in place for products with energy
process requires manufacturers to submit labelling in Australia, Canada, China, New
DEVELOPING LIGHTING PRODUCT
REGISTRATION SYSTEMS test results on the products and certify Zealand, Singapore, and the US, among
that the product performance meets the others. Registration systems are designed
GUIDANCE NOTE

regulations, standards and any labelling to meet the needs of many different
FEBRUARY 2016

requirements before the product can be stakeholder groups, as shown in Table 16.
placed on the market.
For more information
on product registry
databases, see
the recent UN
Environment
publication on
Developing Lighting
Product Registration
Systems.38

Table 16: Product registry system users and their potential needs

STAKEHOLDER POTENTIAL USER NEEDS

Provides a record of baseline data to support policymaking;

expands the evidence database for market surveillance; serves as
POLICYMAKERS/ GOVERNMENT
a storehouse of ancillary information and data about products on
the market

Facilitates declaration of conformity with regulatory or voluntary

MANUFACTURERS, IMPORTERS requirements; provides information about innovation in product
AND WHOLESALERS design (fostering competition and innovation); strengthens brand
credibility; helps to ensure a level playing field

A database of product-specific information in the public domain;

CONSUMERS (E.G. INDUSTRIAL opportunity for advanced features through apps or other tools, doing
USERS, UTILITIES) product searches; enhances transparency of communication about
product performance

Registry information can be used to determine product performance

OTHERS for market pull programmes that incorporate financial incentives or
other incentives.

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6.3.2 TEST LABORATORIES

Measurement of the performance of a minimum level of business in a given
product, as part of a coordinated MVE market to sustain the laboratory, and to
strategy, provides the foundation for the ensure it has adequate revenue with which
effective implementation of energy-efficient to operate and maintain its calibration
transformer policies and regulations. and accreditation. Countries with smaller
Product testing constitutes the cornerstone economies may consider outsourcing
of any product compliance certification laboratory test needs to neighbouring
report, whether for a voluntary or countries.39 For transformers, smaller units
mandatory programme. may be sampled and tested in a laboratory,
but larger units—due to their excessive size
Having a national laboratory can be a
and weight—may need to be tested either at
prestigious asset to manage. However,
the manufacturer’s facility or in the field.
laboratories are expensive facilities to
establish, commission, earn accredited Table 17 depicts the essential elements for
and maintain. There needs to be a certain the reliable operation of a testing laboratory.

Table 17: Essential elements for the reliable operation of a test laboratory

ELEMENT ESSENTIAL ELEMENTS

• Linking measuring equipment to SI unit

TRACEABILITY AND • Accreditation to IEC standards for appropriate test standards
ACCREDITATION (e.g. IEC 60076 family of standards)
• Proficiency testing

• Externally calibrated
CALIBRATION • Internal equipment calibration
• Monitoring laboratory conditions

• Confidence intervals
UNCERTAINTIES
• Determining the uncertainty

• General considerations
TESTING
• Measurement equipment/meters

• Laboratory record keeping system

DOCUMENTATION AND
• Storage conditions
HOUSEKEEPING
• Length of time.

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6.3.3 PROACTIVE COMMUNICATIONS

Communication is a critical element of any risk of detection and sanctions, and any
successful MVE scheme. For manufacturers corrective action taken. Governments may
and importers, it helps to ensure they are choose to list the number and frequency of
aware of their legal obligations and what surveys and tests, identify plans for future
happens if they were found to be non- compliance work and publish information
compliant. For consumers, it lets them know about their work. Some governments may
that their government is working hard for also consider identifying products and
them, ensuring that the national market brands that are non-compliant (also called
for a given product offers a fair and level the “name and shame” approach).
playing field. Communications can also be
Governments can offer a number of
a powerful tool in gaining the respect of
tools, training and guidance to improve
the regulated businesses and improving
compliance rates. They can offer training
compliance rates—for example, taking quick
courses to explain regulatory requirements
action to minimise market damage and
or maintain a regulatory hot-line or email
making it visible, as a deterrent to others.
service to answer questions that the
It is necessary for governments to develop suppliers may have. They can publish a
a communications plan. This plan should frequently asked questions (FAQ) website,
be fine tuned and appropriate for the and provide guidance on compliance
domestic market. It should take into reporting and documentation requirements.
account all the main stakeholders involved All of these approaches help to minimise the
in the supply chain and the importance costs of demonstrating compliance and will
of communicating key messages to them thereby help to ensure higher compliance
about the requirements themselves, the rates and more successful outcomes.

6.3.4 MARKET MONITORING

A critical function of a government market- testing objectives; (b) determining where
surveillance authority is to regularly monitor to test products; (c) adopting appropriate
the market. By doing this they ensure that test standards; (d) selecting parameters to
the products being supplied to the market be tested; and (e) conducting testing and
are compliant. applying test results. The recommendations
in this report focus on the identification
UN Environment has studied the approach
of which type of products should be
that laboratory personnel may follow when
monitored, determining how performance
conducting testing. In another report40, UN
testing data is used, determining where
Environment provides recommendations
the testing will be conducted (e.g. national,
for processes to follow for testing products,
regional, third party), and ensuring
interpreting testing results, and using
test results are accurate and correctly
them to inform policy making. This testing
interpreted.
report covers topics such as (a) identifying

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6.3.5 REGULATORY ENFORCEMENT

In cases of noncompliance, the enforcement authorities should carefully consider the degree
of noncompliance. By doing this they can respond with a proportionate enforcement action.
The available enforcement actions should be flexible, enabling the enforcement authority to
assess the non-compliance situation and initiate a proportionate action. The penalties and
powers of the enforcement authority should be set out in law.

Many enforcement authorities develop an “Enforcement Pyramid” to inform and manage

their enforcement response strategies. The bottom of the pyramid typically features more
informal actions, while the top of the pyramid should reflect the most severe enforcement
response to non-compliance (see Figure 12). The pyramid can be populated to be most
effective for the national enforcement strategy, in accordance with the legal requirements
and resources available to the enforcement authority, and the characteristics of the
programme and its participants and stakeholders.

Figure 12:
Pyramid of
escalating
enforcement for
non-compliant
manufacturers or
importers41
PROSECUTION

SANCTIONS

REMOVAL OF PRODUCT
FROM THE MARKET

CORRECTIVE ACTIONS

INFORMAL ACTIONS

For more information on effective enforcement schemes, please see a recent UN

Environment report42 that serves as a practical resource to policy makers on the steps
to follow when implementing a national enforcement programme. This report covers (a)
legal and administrative foundation for enforcement; (b) enforcement budget and activity
planning; (c) identifying types of non-compliance; and (d) communicating to stakeholders.
Although this report is written about lighting, many of the same principles of MVE presented
in that report are also applicable to transformers.

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7. ENVIRONMENTAL SUSTAINABILITY
AND HEALTH

WHAT? Provides a summary of the importance of the environmental aspects of

recycling and cleaning used transformers and correct disposal of PCBs.

WHY? All transformers contain materials that can be recycled, recovered or

reused, as well as some materials that could be hazardous if simply
dumped in a landfill. By establishing a national collection and recycling
scheme, a “circular economy” objective can be achieved.

NEXT? Some key questions to keep in mind:

• What waste collection and recycling schemes are already being
conducted in our country?
• Who are the critical players who would need to be informed and/or
participate in planning an equipment recycling scheme?
• What are the financial requirements of such a programme, and how
can we find the resources to cover them (which approach will work
best in our country)?
• What are some of the human and environmental health issues
associated with transformers?

Environmentally sound management incorporates the concept of a product’s full life cycle.
It begins from raw materials used in manufacturing through to end-of-life recovery and
recycling. This approach gives regulators a suitable framework to analyse and manage the
performance of goods and services in terms of their impact on the environment.

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When life-cycle management principles are the sustainable management of used

applied to transformers, the assessment transformers. This is consistent with global
concentrates on the following three stages: international policies reducing and safely
managing hazardous waste, including the
• Production: focuses on the raw materials
Stockholm Convention.
and production techniques involved in
manufacturing the product, including As some installed transformers contain
hazardous substances. The production PCBs, care is needed as PCBs are
phase is a natural point of intervention characterised by their persistence,
for hazardous substance regulators in the bioaccumulation, potential for long-range
product life cycle. transport and adverse effects on humans

• Usage: focuses on the environmental and wildlife. The Stockholm Convention

impact of transformers during the use on Persistent Organic Pollutants, including

phase (i.e. from power plant related PCBs, was adopted by the international

emissions) but can also include health community and entered into force in

and safety aspects (including PCBs from 2004. As of 2017 there are 181 signatories

installed stock and refurbished units that to the Stockholm Convention (180 states

have been contaminated). and the EU). Signatories to the Stockholm

Convention can no longer produce PCBs
• End of Life: focuses on the end-of-
and are required to stop using equipment
life management of transformers,
contaminated with PCB by 2015. Existing
highlighting current regulatory
equipment, such as transformers, that
frameworks, examples of best practices
contain PCBs may be used until 2025 and
in establishing, managing and financing
need to be disposed in an environmentally-
end-of-life collection; recycling and
sound manner by 2028.
environmentally sound management;
and disposal. For transformers, disposal UN Environment and other agencies are
can be complicated by the fact that the supporting countries to ensure that PCB
transformer may contain cooling fluids use ceases after 2025. Support includes
with pure PCB or contaminated with PCB guidance to develop and update national
that need to be disposed of safely. inventories, capacity building and

Life-cycle assessments (LCA) conducted establishing proper storage of discontinued

on transformers have concluded that the equipment and ensuring environmentally

usage stage is the most important from an sound management of all PCB oils. For

environmental impact point of view: “When more information on the specific status in a

considering results of the LCA it can be country, please see the document entitled

concluded that the biggest environmental “Consolidated assessment of efforts made

impact is the use phase. This is primarily towards the elimination of polychlorinated

due to the transformer losses; therefore, biphenyls”44 and visit the PCB Elimination
Network website.45
the environmental impact of the use phase
depends on the type of energy source that is The implementation of environmentally
being used.” sound management requires the following
elements to be taken into account: (1) policy
Optimisation across these stages requires
and legal framework; (2) collection schemes
minimising the environmental impacts
and related awareness raising activities; (3)
during each stage. This approach includes
transportation, storage and final disposal
maximising energy efficiency and
strategies; and (4) financial mechanisms to
transformer product life and minimising
cover the running costs.
environmental impact at the design and
manufacturing stages, while ensuring

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7.1 POLICY AND LEGAL FRAMEWORK

To have a required and enforceable national which describe the baseline assessment of
programme, governments must have PCBs and the legal framework for dealing
a legal framework for electronic waste with existing equipment containing PCBs.
and hazardous waste management. This
In addition to PCBs, policymakers should
encourages the development of initiatives
also consider policies for any other
in the country or region for relevant
hazardous materials. Limits should be set
international conventions.
in line with the international best practice
Policymakers should consult their country’s standards. Limits should be reviewed
Stockholm Convention Focal Point46 and regularly and adjusted to account for
consult National Implementation Plans , 47
technical progress.

CASE STUDY: Disposal of PCBs from Transformers, Southern Africa

Through a regional GEF-funded project in Southern Africa, UN Environment is

working with 12 countries to dispose of PCBs from existing transformers in a safe and
environmentally sound manner.

According to the project’s estimates, there are more than 10,000 transformers containing
PCBs in the region, amounting to approximately 2,000 tonnes of contaminated oils.

Currently, most countries lack the legal framework for handling PCBs and owners of
the transformers are often unaware of the risk to the environment and human health.
Compounding that risk is the fact that PCB fluids are sometimes mixed with mineral
oils during routine transformer maintenance, and subsequently reused in previously
uncontaminated transformers.

The GEF and UN Environment project in Southern Africa has the objective of reducing the
environmental and human health risks by putting in place a cost-effective and socially
responsible environmentally sound management plan for PCBs. Some of the activities
included in the project are:

• Developing of national and regional PCB regulations

• Providing training for inspectors and controls officials to ensure market monitoring
and verification are properly completed

• Adopting phase-out plans at the national level with utility owners and other
transformer owners; and

• Establishing a regional mechanism to complete the collection of PCBs and licensing

companies to collect, drain and transport PCBs.

For more information click here.

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7.2 COLLECTION SCHEMES

Improper handling, collection, storage, transportation or disposal of hazardous materials—
in particular, PCBs—and waste can lead to releases of pollution that can persist in the
atmosphere, soil, water, and a source of human exposure through food. Collection and
disposal programmes for PCBs and more broadly transformers are important because
they can promote the recovery of other materials found in the end of life of transformers,
including metals and oil. Recycling and reuse of transformers may offer secondary
commercial opportunities in developing countries that decide to implement collection
and recycling systems.

Before recycling of transformers or use of existing parts, they have to be cleaned of PCBs.
Even very small amounts of PCB can contaminate new fluids, and the transformers will
become once more equipment that can no longer be used after 2025.

7.3 RECYCLING PROGRAMMES

At the end of the service life of a transformer, a high rate of recycling can be expected due
to the value of the metals used in the construction of the transformer. Policy measures
encouraging the environmentally sound management of used transformers should be
coupled with technologies that capture and securely clean the transformer from future
contamination of PCBs and ensure more energy-efficient transformers are delivered to the
market. No processing to recover PCBs is allowed to parties to the Stockholm Convention
and recycling of other transformer components is only possible if cleaned of PCBs.

Regulators can explore and adopt approaches encouraging the collection and recycling of
used transformer units, bearing in mind they cannot be contaminated with PCBs (to avoid
cross-contamination). These approaches should be adapted to national conditions, taking
into account any local manufacturing and scrap metal dealers. If effectively designed and
managed, these policies can create jobs in collection and recycling, while at the same time
reducing overall environmental impact.

7.4 FINANCING ENVIRONMENTALLY

SUSTAINABLE MANAGEMENT
Decisionmakers address policy questions related to designing collection schemes. These
schemes address when, to what extent, and in what manner consumers pay. Regulators
should look at the market and decide which stakeholders will support
the programme.

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Due to the high value of the windings and Costs are passed to the end user, but
core steel virtually all transformers taken a company that can reduce its internal
out of service are recycled. This recycling costs through process redesign can gain
is self-financed through the scrap value of a market advantage.
the metals being recycled. For this reason,
• Advance disposal fee systems—industry
financing is generally not necessary to
manages fees in a so-called “eco-fee.”
ensure recycling of transformers at the
In this system, a small portion of the
end of life; however, were it required,
purchase price of a product supports an
then governments may consider sources
end-of-life management system.
of financing that have been used for other
• Regional systems—the establishment
end use products like lighting products and
of regional systems can be the optimal
refrigerators. These are listed below:
solution in cases where national
• Full cost internalisation—reflecting approaches are not financially viable
individual producer responsibility, this to support recycling of transformers in
mechanism establishes a direct incentive one single country.
for competition and design improvement.

7.5 ESTER ELECTRICAL INSULATING FLUIDS

Liquid-filled transformers have their Ester is a reaction product from the
electrical windings immersed in a dielectric combination of an acid and an alcohol.
fluid to reduce electrical clearances and Esters come in many forms, but the ester-
greatly improve cooling performance, thus based fluids used in transformers can be
making transformers more compact. For split into two groups, synthetic and natural.
many years mineral oil has been seen as the Synthetic esters are manufactured from
fluid of choice for electrical transformers carefully selected raw materials to give
due to its favourable cooling and electrical a finished product that is tailored to the
performance. It does have, however, some specific application. Natural esters are
short comings including flammability, poor derived directly from renewable natural
environmental performance, low moisture sources, primarily seed oils such as soya
tolerance, and corrosive sulphur. bean, rapeseed oil or sunflower oil. The base
oil is chosen to give the best possible fit to
An alternative cooling fluid to mineral oil is
the application; however, unlike synthetic
an ester-based fluid. They are classified as
esters the properties of these base oils
fire safe, are readily biodegradable, are free
cannot be modified significantly. Thus to get
from corrosive sulphur compounds, and
a natural ester dielectric fluid that remains
have excellent moisture tolerance. These
liquid at low temperatures, a compromise
attributes are important for environmental
must be made, and a base oil with relatively
impact especially in areas such as Africa with
poor oxidation stability is usually chosen.
pole- and ground-mounted transformers
This means natural esters are only suitable
installed in remote areas without oil
for sealed equipment. Natural esters are
containment facilities. Ester fluids have also
best suited to temperate locations or indoor
been shown to extend the life of electrical
applications.
insulation, which prolongs the service life of
the transformer.

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8. IMPLEMENTATION

WHAT? Provides an overview of the approach governments may wish to follow

when initiating a market-transformation programme for transformers in
their national market.

WHY? This section offers a summary/overview of the U4E’s “Policy

Fundamentals Guide”.

NEXT? Some key questions to keep in mind:

• How do we initiate actions in our market to start promoting energy-
efficient transformers?
• What legislative/legal structures and programmes are necessary?
• What stakeholder groups should be formed and involved in the process?

To support governments in promoting energy efficiency and removing obsolete and energy
intensive transformer technologies from their markets, U4E has developed a step-by-step
guide called “Policy Fundamentals Guide”. This guide offers an overview of the key elements
required to transform a national appliance market toward more energy-efficient products
through the application of the U4E Integrated Policy Approach.

“Policy Fundamentals Guide” is crosscutting for all U4E priority products including lighting,
residential refrigerators, air conditioners, transformers and electric motors. The approach can
also be expanded to other energy-consuming products.

By following the approach outlined in the “Policy Fundamentals Guide,” national

governments and regional institutions can develop a clear vision and policy goals, identify
specific objectives, and determine the required processes (such as identifying resource
requirements, responsibilities and tracking performance to ensure transparency). By
establishing a systematic plan, regions and countries ensure that the approach adopted is
coherent and will save time, effort and resources.

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While each section of the “Policy Chapter 4

Fundamentals Guide” is outlined in detail How to Make Efficient Products Affordable
in the guide, the actual components in – addresses the critical issue of overcoming
the strategy may vary according to each first-cost barriers to market adoption,
country’s situation and needs. Therefore, the including topics such as financing sources,
guidance should be adapted to meet the approaches and stakeholders. Topics
local context and needs. covered include energy service companies,
financing programmes, bulk procurement
The process should be led by governments
schemes, and electric utility programmes.
or regional institutions with methodological
This section also describes how countries
support, guidance and technical advice from
with subsidised electricity tariffs can use
U4E (and/or other) experts. It should involve
innovative schemes to drive efficiency.
all relevant stakeholders to jointly determine
priorities and the most appropriate Chapter 5
pathways to achieve them. How to Establish and Improve Compliance
Programmes – discusses the importance of
The following is a brief overview of the
monitoring, verification, and enforcement
“Policy Fundamentals Guide”:
(MVE) schemes from both a manufacturer’s
Chapter 1 and a consumer’s perspective. It also
Introduction – provides an overview of the discusses the critical role of government
benefits of energy-efficient products and in establishing and maintaining a robust
the U4E Integrated Policy Approach. market surveillance programme.

Chapter 2 Chapter 6
How to Prepare for Programme Environmentally Sound Management –
Implementation – introduces the organising provides a summary of the importance
bodies and overarching legislative and legal of safe and sustainable recycling and
frameworks that need to be in place to disposal programmes. It also touches on the
operate an effective programme. It provides development of health and safety standards
guidance on the resources required for for products, particularly those with toxic or
implementing a programme and strategies harmful components.
for securing those resources. It also
Chapter 7
provides information on collecting data
How to Measure Success and Improve
and prioritising products for inclusion in a
Programmes – describes the key
programme.
components of an evaluation framework
Chapter 3 to measure the results from market
How to Design and Implement Market transformation programmes and then use
Transformation Programmes – provides those results to improve programmes.
the basic steps to follow when designing
Chapter 8
and implementing market transformation
Resources – presents reports and resources
policies—including market assessment,
from energy-efficient appliance, equipment,
barrier analysis, regulations, standards,
and lighting programmes and experts
labels, awareness campaigns, and awards
around the world.
and recognition programmes. It provides
case studies of effective implementation
in countries across the world and
recommendations for developing regional
initiatives.

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9. RESOURCES

Provides some additional Consulting, Inc.). LBNL- studies on energy-efficient

resources and background 6682E, Environmental Energy transformers. ABB offers
material that can offer Technologies Division. its expertise to help ensure
governments further assistance in Available at https://ies.lbl.gov/ electric utilities, commercial
developing schemes to promote sites/all/files/lbnl-6682e.pdf and industrial customers,
energy-efficient transformers. electrical contractors and
• Sumper, Andreas and Baggini,
other stakeholders are able to
Publications Angelo, 2012. Electrical Energy
make a head start in meeting
• Frau, Juan; Gutierrez, Jordi and Efficiency: Technologies and
or exceeding the efficiency
Ramis, Alonso, 2007. Consider Applications. Available at
standards. Available at
the True Cost Of Transformer http://eu.wiley.com/
http://new.abb.com/products/
Losses. T&D World. Available at WileyCDA/WileyTitle/
transformers/energy-efficiency
http://www.tdworld.com/ productCd-0470975512.html
distribution-management- • Transformer Life-Cycle Cost
• Transformers—a website
systems/consider-true-cost- (Total Cost of Ownership)—
offered by ICA that presents
transformer-losses website offered by ICA
several publications focusing
providing a description of
• INTAS Industrial and on the purchase of a premium,
the total cost of ownership
tertiary product testing and high-efficiency, copper-wound
approach, how to calculate the
application of standards. transformers, demonstrating
A and B factors and an example
Available at http://www.intas- the significant savings over the
to show the impact of the
testing.eu/transformers/intro life of a transformer compared
calculation and the savings that
to other alternatives. Available
• Letschert, Virginie; McNeil, would accrue to the company
at https://www.copper.org/
Michael; Ke, Jing and evaluating the losses. Available
environment/sustainable-
Kalavase, Puneeth, 2013. at https://www.copper.org/
energy/transformers/
Energy Efficiency Potential environment/sustainable-
for Distribution Transformers Online Tools energy/transformers/
in the APEC Economies. • Energy efficiency in education/trans_life_cycle.
Lawrence Berkeley National transformers—website html
Laboratory and Mahesh offered by ABB providing
Sampat (EMS International many resources and case

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 ENERGY-EFFICIENT TRANSFORMERS 74

• Transformer Loss Calculation December 2013. https://ies.lbl. reports, books, conference

Tool—calculates losses for gov/sites/all/files/lbnl-6682e. proceedings, press activities,
different types of transformers pdf and websites. ACEEE was
and CO2 emissions. It gives founded in 1980 by leading
• Energy PROPHET II: The
you information about researchers in the energy
potential for global energy
the most energy-efficient field. Since then it has
savings from high-efficiency
transformer during its life time. grown to a staff of about 50.
distribution transformers;
The evaluation of the most ACEEE focuses on energy
Paul Waide, Waide Strategic
economic transformer will be policy (federal, state, and
Efficiency Limited and
done by the capitalized cost, local), research (including
Michael Scholand, N14
payback time, and internal rate programmes on buildings and
Energy Limited; 2014. https://
of return. This tool, therefore, equipment, utilities, industry,
www.researchgate.net/
gives additional information agriculture, transportation,
publication/270879463_
about the no-load and load behaviour, economic analysis,
Energy_PROPHET_II_The_
loss evaluation (A and B factor), and international initiatives.
potential_for_global_energy_
in case they are not known in
savings_from_high-efficiency_ • CLASP—a nonprofit
advance. Available at: https://
distribution_transformers international organisation
www.dnvgl.com/services/
promoting for energy-
transformer-loss-calculation- Other Relevant Resources
efficiency standards and labels
tool-70030 • American Council for an
(S&L) for appliances, lighting,
Energy-Efficient Economy
• SMART UTILITY: Consider and equipment. CLASP
(ACEEE)—a nonprofit,
the True Cost of Transformer improves the environmental
501(c)(3) organisation, acts
Losses http://www. and energy performance
as a catalyst to advance
tdworld.com/distribution- of the appliances and
energy-efficiency policies,
management-systems/ related systems, lessening
programmes, technologies,
consider-true-cost- their impacts on people
investments, and behaviours.
transformer-losses and the world around us.
Focusing on the US, ACEEE
CLASP develops and shares
• INTAS: Industrial and tertiary seeks to harness the full
practical and transformative
product testing and application potential of energy efficiency
policy and market solutions
of standards http://www.intas- to achieve greater economic
in collaboration with
testing.eu/transformers/intro prosperity, energy security,
global experts and local
and environmental protection.
• Electrical Energy Efficiency: stakeholders. Since 1999,
ACEEE carries out its mission
Technologies and Applications, CLASP has worked in over 50
by: (1) conducting in-depth
Andreas Sumper, Angelo countries on six continents
technical and policy analyses;
Baggini, ISBN: 978-0-470- pursuing every aspect of
(2) advising policymakers
97551-0 http://eu.wiley. appliance energy efficiency,
and programme managers;
com/WileyCDA/WileyTitle/ from helping structure new
(3) working collaboratively
productCd-0470975512.html policies to evaluating existing
with businesses, government
programmes.
• Energy Efficiency Potential officials, public interest groups,
for Distribution Transformers and other organisations; (4) • European Council for an
in the APEC Economies; convening conferences and Energy-Efficient Economy
Virginie Letschert, Michael workshops, primarily for (ECEE)—a membership-based
McNeil, Jing Ke, Puneeth energy efficiency professionals; nonprofit association. As
Kalavase of Lawrence (5) assisting and encouraging Europe’s largest and oldest
Berkeley National Laboratory traditional and new media NGO dedicated to energy
and Mahesh Sampat (EMS to cover energy efficiency efficiency, they generate
International Consulting, Inc.). policy and technology issues; and provide evidence-
LBNL-6682E, Environmental and (6) educating consumers based knowledge and
Energy Technologies Division, and businesses through our analysis of policies, and they

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 ENERGY-EFFICIENT TRANSFORMERS 75

facilitate co-operation and development, environmental

networking. ECEEE members awareness, and engagement
are found among private worldwide. Founded in
and public organisations, response to the 1973/4 oil
as well as among all those crisis, the IEA’s initial role was
professionals from all sectors to help countries coordinate
who share ECEEE’s goals. a collective response to
ECEEE offers governments, major disruptions in oil
industry, research institutes supply through the release of
and citizen organisations a emergency oil stocks. The IEA
unique resource of evidence has a staff of 260 enthusiastic
based knowledge and reliable professionals (energy analysts,
information. ECEEE promotes modelers, data managers/
the understanding and statisticians, technicians,
application of energy efficiency secretaries and support staff)
in society and assists its target working together on global
groups—from policymakers energy challenges.
to programme designers to
• SEAD Initiative—an initiative of
practitioners—with making
the Clean Energy Ministerial,
energy efficiency happen.
SEAD seeks to engage
ECEEE is registered as a
governments and the private
Swedish organisation and has
sector to transform the global
its secretariat in Stockholm.
market for energy-efficient
ECEEE participates actively in
equipment and appliances.
the European policymaking
SEAD initiated an international
process, the organisation
collaboration of technical
participates in a number of
and policy experts in solid-
EU policymaking and advisory
state lighting, which worked
fora, and frequently comments
to promote alignment and
on European energy policy
improvements in the scope
through position papers
and stringency of international
and responses to public
standards and labeling
consultations. ECEEE has also
programmes. Current SEAD
held expert workshops and
member governments include
briefings for policymakers.
Australia, Brazil, Canada, the
It has co-operated with EC, Germany, India, Indonesia,
the European Commission, Mexico, Russia, Saudi Arabia,
the Parliament and the EU South Africa, Sweden, Republic
presidency, to hold expert of Korea, United Arab Emirates,
seminars. These institutions UK; and China and the US
appreciate the competence maintain an observer status.
and integrity offered by
ECEEE’s network of members.

• IEA—an autonomous
organisation working to ensure
reliable, affordable and clean
energy for its 28 member
countries and beyond. The
IEA’s four main areas of focus
are: energy security, economic

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 ENERGY-EFFICIENT TRANSFORMERS 76

10. REFERENCES

CLASP and the Danish Low Carbon Transition Unit, SEAD, 2013. Standards & Labelling Working Group
2013. Energy Policy Toolkit for Energy Efficiency in Distribution Transformers Collaboration: Part
Appliances, Lighting, and Equipment. 1: Comparison of Efficiency Programmes for
http://clasp.ngo/Resources/Resources/ Distribution Transformers: A report citing the
PublicationLibrary/2013/Energy-Policy-Toolkit-for- similarities and differences amongst the
Energy-Efficiency-in-Appliances available distribution transformer test methods
and efficiency levels.
European Commission, 2014. Regulation No 548/2014 http://clasp.ngo/en/Resources/Resources/
of 21 May 2014 on implementing Directive 2009/125/ PublicationLibrary/2014/SEAD-Analyzes-Potential-
EC of the European Parliament and of the Council for-Alignment-of-Distribution-Transformer-
with regard to small, medium and large power Efficiency-Levels
transformers.
http://eur-lex.europa.eu/legal-content/EN/TXT/ SEAD, 2013. Standards & Labelling Working
PDF/?uri=CELEX:32014R0548&from=EN Group Distribution Transformers Collaboration:
Part 2: Test Method Review Report: A report
Mark Ellis & Associates and CLASP, 2010. A Survey of containing information about the different
Monitoring, Verification and Enforcement Regimes international test methods for measuring the
and Activities in selected countries, Final Report. efficiency of distribution transformers.
http://clasp.ngo/en/Resources/Resources/ http://clasp.ngo/en/Resources/Resources/
PublicationLibrary/2010/Compliance-Counts-MVE- PublicationLibrary/2014/SEAD-Analyzes-Potential-
guidebook for-Alignment-of-Distribution-Transformer-
Efficiency-Levels

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 ENERGY-EFFICIENT TRANSFORMERS 77

SEAD, 2013. Standards & Labelling Working Group UNEP, 2013. Guidebook for the Development of
Distribution Transformers Collaboration: Part 3: a Nationally Appropriate Mitigation Action on
Energy Efficiency Class Definitions for Distribution Efficient Lighting.
Transformers, Suggested energy efficiency classes http://www.unep.org/pdf/Guidebook_for_
for global harmonisation of programmes for development_of_a_nationally_mitigation_action.
distribution transformers. pdf
http://clasp.ngo/en/Resources/Resources/
PublicationLibrary/2014/SEAD-Analyzes-Potential- UNEP, 2015. Developing a National or Regional
for-Alignment-of-Distribution-Transformer- Efficient Lighting Strategy; A Step-by-Step Guide
Efficiency-Levels for Policymakers.
http://www.enlighten-initiative.org/portals/0/
SEAD, 2013. Standards & Labelling Working Group documents/Resources/publications/NELS_guide_
Distribution Transformers Collaboration: Part 4: english_2015-11-17.pdf
Country Profiles for Internationally-Comparable
Test Methods and Efficiency Class Definitions for Waide Strategic Efficiency Limited and N14 Energy
Distribution Transformers: A reference document Limited, 2014. PROPHET II: The potential for global
presenting all the country-level information on energy savings from high-efficiency distribution
energy efficiency programmes and test methods transformers, Final report.
for distribution transformers globally. Super- https://www.researchgate.net/
efficient Equipment and Appliance Deployment publication/270879463_Energy_PROPHET_II_The_
(SEAD) initiative. potential_for_global_energy_savings_from_high-
http://clasp.ngo/en/Resources/Resources/ efficiency_distribution_transformers
PublicationLibrary/2014/SEAD-Analyzes-Potential-
for-Alignment-of-Distribution-Transformer-
Efficiency-Levels

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 ENERGY-EFFICIENT TRANSFORMERS 78

ANNEX A. GLOSSARY
Compliance: conforming to a rule, such Power Quality: characteristics of the electric
as a law, policy, specification or standard. current, voltage and frequencies at a given
Also, fulfilment by countries/businesses/ point in an electric power system, evaluated
individuals of emission reduction and against a set of reference technical
reporting commitments under the UNFCCC parameters. Note: These parameters might,
and the Kyoto Protocol. (UNFCCC) in some cases, relate to the compatibility
between electricity supplied in an electric
Full Procedure Verification Test: a test
power system and the loads connected to
where all procedures for measurements and
that electric power system. (IEC)
records stipulated in the entry conditions
for an accreditation scheme have been Rebound Effect: behavioural responses to
followed. the introduction of new, more efficient,
technologies whereby consumers use the
Greenhouse Gases (GHGs): The atmospheric
product in question more frequently or for
gases responsible for causing global
longer because of its increased efficiency.
warming and climate change. The major
This results in a reduction in the beneficial
GHGs are carbon dioxide (CO2), methane
effects of the new technology.
(CH4) and nitrous oxide (N20). Less
prevalent but very powerful GHGs are: Registration Verification: process of
hydrofluorocarbons (HFCs), perfluorocarbons confirming that registered products meet
(PFCs) and sulphur hexafluoride (SF6). the requirements of a programme’s entry
(UNFCCC) conditions.

Mercury (Hg): a metallic element, the only Self-certification: practice of submitting

one that is liquid at room temperature. information about one’s product in a formal
statement rather than being obliged to ask a
Minimum Energy Performance Standard
third party to do so.
(MEPS): a mandatory minimum performance
level that applies to all products sold SI Unit: any of the units adopted for
in a market, whether imported or international use under the Système
manufactured domestically. MEPS can be International d’Unités.
technology-neutral, or, can apply to specific
technologies.

Peak Energy Demand: period in which

electrical power is expected to be provided
for a sustained period at a significantly
higher than average supply level.

Power Factor: under periodic conditions,

ratio of the absolute value of the active
power P to the apparent power S:

Note: Under sinusoidal conditions, the

power factor is the absolute value of the
active factor. (IEC)

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ANNEX B. COMPARISON OF MEPS BETWEEN

DIFFERENT COUNTRIES
Comparing different MEPS based on The IEC test method is more common
performance indexes is sometimes among countries with transformer efficiency
difficult primarily due to differences in: requirements. The method selected also

• Rated power definitions has an impact on how losses are treated in

the efficiency metric. Efficiency is, broadly
• Reference temperatures
speaking, a measurement of power out
• Rated frequencies divided by power in. However, the way
• Rated maximum voltages of that efficiency is calculated differs slightly
the equipment. between IEC and IEEE. This difference
stems from a difference in how transformers
When comparing national energy efficiency are rated, i.e., the power capacity of a
standards for transformers around the transformer. In IEC, the equation is based on
world, some standards are comparable, but the input power, while for IEEE, the equation
in others, there are underlying differences is based on output power, as shown in the
preventing direct comparisons. For example, following equations:
transformers must operate at the frequency
of the system where they are installed IEC Definition Efficiency = (Power Input-Losses)
(i.e. 50Hz or 60Hz), and the efficiency of
(Power Input)
a transformer will vary slightly with the
frequency of the network. Furthermore,
some policymakers establish energy
IEEE Definition Efficiency = Power Output
performance requirements for transformers
(Power Output+Losses)
on a basis of maximum losses for the core
and coil at full load separately, while others
establish maximum losses summed together Where:
for a particular rated power. Still other Power Output and Power Input are
policymakers specify the efficiency at a measured in Watts and are calculated by
percentage loading point. multiplying the power rating (kVA) of the
transformer (IEEE or IEC method) by the
In addition, there are some differences per unit load (e.g. 50 per cent of rated
between how the power rating of a nameplate);
transformer is reported in different
markets. In countries applying IEEE Losses represents the sum of core and
standards (generally North America), the coil losses at the per unit load point;
rated power of the transformer is defined where core loss is the power loss in the
as the rated capacity at the output of the core at rated voltage and coil losses are
device—that is, it represents the available the square of the per unit load times the
capacity at the load point. In other parts coil losses at rated capacity.
of the world employing IEC standards, the
Per unit load is the decimal equivalent of
power rating (kVA) represents the rated
the percentage of rated load supplied by
input to the transformer—how much power
the transformer, such as 0.50 for 50 per
is being supplied to a particular unit. When
cent of rated capacity.
rated as the output (i.e. the IEEE method),
the power rating excludes the core and coil
losses when the transformer is operating,
whereas for the input capacity (i.e. the IEC
method), the power rating includes the
transformer’s losses.

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Although the first point above is apparent, in practice it is not considered, since both the IEC
and IEEE refer to the same numerical values of rated powers in their series. Similarly, also
loss values defined per IEEE standards cannot be compared directly with the same figures
specified to IEC standards because they are referring to different rated powers (see Table 18).

Table 18: Illustrative comparison of power rating (kVA) conventions, IEC and IEEE

ITEM IEC METHOD IEEE METHOD

POWER RATING (KVA) 50 kVA 48.6 kVA

CORE LOSSES 0.190 kW 0.190 kW

COIL LOSSES 1.250 kW 1.250 kW

EFFICIENCY = (kVA – losses) / kVA = kVA / (kVA + losses)

EQUATION = (50 – (0.190 + 1.250))/50 = 48.6 / (48.6 + (0.190 + 1.250)

RESULT (%) 97.12 97.12

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 ENERGY-EFFICIENT TRANSFORMERS 81

ANNEX C. IEC 60076 TEST STANDARDS

The set of international standards covering applications. Excluded: - Instrument
power transformers is published under transformers - Testing transformers -
IEC 60076, Power Transformers, and is Traction transformers mounted on rolling
prepared by IEC Technical Committee 14 stock - Welding transformers - Transformers
(IEC TC14). The scope of the IEC TC14 is for applications covered by Technical
the standardisation in the field of power Committee 96.
transformers, tap-changers and reactors for
Figure 3 on page 41 lists the main IEC
use in power generation, transmission and
TC14 published standards documents.
distribution. Generally these transformers
The IEC standards addressing specifically
have power ratings above 1 kVA single phase
power transformer tests (PTT) and power
and 5 kVA polyphase with a higher voltage
transformer energy performance related
winding of 1,000 V or more, however the
tests (EPT) are highlighted in the EPT/PTT
scope includes lower voltage transformers
column.
and regulators used in power delivery

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The following provides more detail on the • the procedures for the temperature
above cited standards. rise test were improved in relation to
the new thermal requirements
IEC 60076-1 ed3.0 (2011-04)—Power
transformers—Part 1: General • five informative annexes were added

This part of IEC 60076 applies to three- to facilitate the implementation of

phase and single-phase power transformers this standard.

(including auto-transformers) with the

IEC 60076-3 ed3.0 (2013-07)—Power
exception of certain categories of small and
transformers—Part 3: Insulation levels,
special transformers.48 When IEC standards
dielectric tests and external clearances in air
do not exist for certain categories of
IEC 60076-3:2013 specifies the insulation
transformers, this part of IEC 60076 may still
requirements and the corresponding
be applicable either as a whole or in part.
insulation tests with reference to specific
For those categories of power transformers
windings and their terminals. This
and reactors which have their own IEC
International Standard applies to power
standards, this part is applicable only to the
transformers as defined by IEC 60076-1.
extent in which it is specifically called up by
It also recommends external clearances
cross-reference in the other standard. The
in air. It gives details of the applicable
updated edition of this standard includes
dielectric tests and minimum dielectric test
the following technical sections that were
levels. Recommended minimum external
not in the previous version:
clearances in air between live parts and
• definition of harmonic content between live parts and earth are given

• subclause on transport for use when these clearances are not

specified by the purchaser. For categories
• functional method of specification
of power transformers and reactors that
• connection symbols for single phase have their own IEC standards, this standard
transformers is applicable only to the extent in which it is
• safety and environmental requirements specifically called up by cross reference in
the other standards. This third edition of IEC
• requirements for liquid preservation
60076-3 cancels and replaces the second
systems
edition published in 2000, and constitutes a
• clause on DC currents technical revision.
• vacuum, pressure and leak tests on tanks
IEC 60076-4 ed1.0 (2002-06)—Power
• facilities for condition monitoring and transformers—Part 4: Guide to the lightning
environmental and safety considerations. impulse and switching impulse testing—
Power transformers and reactors
IEC 60076-2 ed3.0 (2011-02)—Power
This standard gives guidance and
transformers—Part 2: Temperature rise for
explanatory comments on the existing
liquid-immersed transformers
procedures for lightning and switching
This standard applies to liquid-immersed
impulse testing of power transformers
transformers, identifies power transformers
to supplement the requirements of IEC
according to their cooling methods, defines
60076-3. Also generally applicable to
temperature rise limits and gives the
the testing of reactors (see IEC 60289),
methods for temperature rise tests. This new
modifications to power transformer
edition includes the following significant
procedures being indicated where required.
technical changes with respect
The standard provides information on
to the previous edition:
wave shapes, test circuits including test
• the winding hot-spot temperature connections, earthing practices, failure
rise limit was introduced among detection methods, test procedures,
the prescriptions measuring techniques and interpretation
of results.

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IEC 60076-5 ed3.0 (2006-02)—Power IEC 60076-10 ed1.0 (2001-05)—Power

transformers—Part 5: Ability to withstand transformers—Part 10: Determination of
short circuit sound levels
This standard identifies the requirements This standard defines sound pressure and
for power transformers to sustain without sound intensity measurement methods by
damage the effects of overcurrents which sound power levels of transformers,
originated by external short circuits. It reactors and their associated cooling
describes the calculation procedures used auxiliaries may be determined. Is applicable
to demonstrate the thermal ability of a to transformers and reactors covered by the
power transformer to withstand such IEC 60076 series and the IEC 61378 series,
overcurrents and both the special test and without limitation as regards size or voltage
the theoretical evaluation method used to and when fitted with their normal cooling
demonstrate the ability to withstand the auxiliaries.
relevant dynamic effects.
IEC 60076-10-1 ed1.0 (2005-10)—Power
IEC 60076-6 ed1.0 (2007-12)—Power transformers—Part 10-1: Determination of
transformers—Part 6: Reactors sound levels—Application guide
The standard applies to the following This standard provides supporting
types of reactors: shunt reactors; series information to help both manufacturers
reactors including current-limiting reactors, and purchasers apply the measurement
neutral-earthing reactors, power flow techniques described in IEC 60076-10.
control reactors, motor starting reactors, This standard describes the sources and
arc-furnace series reactors; filter (tuning) characteristics of transformer and reactor
reactors; capacitor damping reactors; sound, provides practical guidance on
capacitor discharge reactors; earthing making measurements, and discusses
transformers (neutral couplers); arc- factors that may influence the accuracy
suppression reactors; smoothing reactors of the methods. It applies to transformers
for HVDC and industrial application. and reactors together with their associated
cooling auxiliaries.
IEC 60076-7 ed1.0 (2005-12)—Power
transformers—Part 7: Loading guide for IEC 60076-11 ed1.0 (2004-05)—Power
oil-immersed power transformers transformers—Part 11: Dry-type transformers
This standard is applicable to oil-immersed This standard applies to dry-type power
transformers and describes the effect transformers (including auto transformers)
of operation under various ambient having values of highest voltage for
temperatures and load conditions on equipment up to and including 36 kV and
transformer life. at least one winding operating at greater
than 1,1 kV. This standard applies to all
IEC 60076-8 ed1.0 (1997-10)—Power
construction technologies.
transformers—Part 8: Application guide
This standard provides information to IEC 60076-12 ed1.0 (2008-11) —Power
users about certain fundamental service transformers—Part 12: Loading guide for
characteristics of different transformer dry-type power transformers
connections and magnetic circuit designs; This standard applies to dry-type
system fault currents; parallel operation of transformers according to the scope of IEC
transformers, calculation of voltage drop or 60076-11. It provides the means to estimate
rise under load; selection of rated quantities ageing rate and consumption of lifetime of
and tapping quantities; application of the transformer insulation as a function of
transformers of conventional design to the operating temperature, time and the
convertor loading; measuring techniques loading of the transformer.
and so on. This standard cancels and
replaces IEC 60606.

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IEC 60076-13 ed1.0 (2006-05)Power IEC 60076-16 ed1.0 (2011-08) —Power

transformers—Part 13: Self-protected transformers—Part 16: Transformers for
liquid-filled transformers wind turbine applications
The standard applies to high-voltage/ This standard applies to dry-type and liquid-
low-voltage self-protected liquid-filled immersed transformers for rated power
and naturally cooled transformers for rated 100 kVA up to 10,000 kVA for wind turbine
power 50 kVA to 1,000 kVA for indoor or applications having a winding with highest
outdoor use having a primary winding voltage for equipment up to and including
(high-voltage) with highest voltage for 36 kV and at least one winding operating at
equipment up to 24 kV; a secondary a voltage greater than 1,1 kV.
winding (low-voltage) with highest voltage
IEC 60076-18 ed1.0 (2012-07) —Power
for equipment of 1,1 kV.
transformers—Part 18: Measurement of
IEC 60076-14 ed2.0 (2013-09) —Power frequency response
transformers—Part 14: Design and This standard covers the measurement
application of liquid-immersed power technique and measuring equipment
transformers using high-temperature to be used when a frequency response
insulation materials measurement is required either on-site or
This standard provides specification, design, in the factory either when the test object
testing and loading information for use by is new or at a later stage. This standard is
both the manufacturer and user of liquid- applicable to power transformers, reactors,
immersed power transformers employing phase shifting transformers and similar
either high-temperature insulation or equipment.
combinations of high-temperature and
IEC/TS 60076-19 ed1.0 (2013-03)—
conventional insulation. Is applicable to:
Power transformers—Part 19: Rules for
• power transformers designed in
the determination of uncertainties in
accordance with IEC 60076-1
the measurement of losses in power
• convertor transformers designed to transformers and reactors
IEC 61378 series This standard is a Technical Specification

• arc furnace transformers; and (TS), it illustrates the procedures that should
be applied to evaluate the uncertainty
• covers the use of various liquid and solid
affecting the measurements of no-load
insulation combinations.
and load losses during the routine tests on
This new edition includes the following power transformers. Even if the attention is
significant technical changes with respect especially paid to the transformers, when
to the previous edition: applicable the specification can be also
used for the measurements of reactor
• enhancement of insulation system
losses, except large reactors with very low
descriptions
power factor.
• clarification of temperature rise limits;
and IEC/TS 60076-20:2017—Power
transformers—Part 20: Energy efficiency
• the addition of overload temperature
This technical specification (TS) is applicable
limits.
to transformers in the scope of IEC 60076-
IEC 60076-15 ed1.0 (2008-02) —Power 1. It proposes two methods of defining an
transformers—Part 15: Gas-filled power energy efficiency index and introduces
transformers three methods of evaluating the energy
This standard applies to gas-filled power performance of a transformer. The
transformers (including auto-transformers) appropriate method is chosen by agreement
and to all construction technologies. This between purchasers and manufacturers or
standard may be applicable as a whole or in according to local regulations.
parts to other transformers.

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IEC 60076-21 ed1.0 (2011-12) —Power

transformers—Part 21: Standard
requirements, terminology, and test code
for step-voltage regulators
This standard provides a description of
design types, tables of 50 Hz and 60 Hz
ratings, supplementary ratings, construction,
and available accessories are provided.
Methods for performing routine and design
tests applicable to liquid-immersed single
and three-phase step-voltage regulators
are described. Winding resistance
measurements, polarity tests, insulation
power factor and resistance tests, ratio
tests, no load loss and excitation current
measurements, impedance and load loss
measurements, dielectric tests, temperature
tests, routine and design impulse tests,
short-circuit tests, control tests, calculated
data, and certified test data are covered.

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ANNEX D. TOTAL COST OF OWNERSHIP FOR VALUING

LOSSES (ANNEX A FROM IEC TS 60076-20:2017)
CAPITALISATION OF LOSSES

A.1 General theory, concept of capitalisation

Capitalisation of losses is an effective means of minimising the total cost of transformers,

taking into account the initial cost of the transformer and the lifetime cost of the electricity
supplying the losses. Capitalisation of losses will increase the initial cost of the transformer
over the value that is required to meet the basic specification, but the additional investment
is justified by the capitalisation calculation and the consequential reduction of losses.

In essence, the process of capitalisation involves the calculation of the value today of the
savings from reduced losses over the lifetime of the transformer. This means that the energy
savings need to be calculated along with their yearly value. In turn, this means that the cost
of the electricity saved needs to be predicted over a 30 to 50 year period for the analysis.
The production of energy consumed in losses and the cost of electricity, considered for each
year of the analysis period and discounted at an appropriate interest rate to represent their
value today, gives the total value of losses to be evaluated against the cost of reducing the
losses.

This calculation of the net present value of electricity in the future is inevitably a prediction,
and thus involves a significant degree of uncertainty. The calculation of the appropriate
capitalisation factors involves judgement and a sophisticated financial approach and should
be carried out by experts with specialist knowledge of the issues. The capitalisation factor
may be subject to significant regional variations due to differences in electricity production
and distribution, and the cost of capital.

The tender for the transformer is then assessed on the basis of the initial cost plus the
capitalised value of load and no-load losses so that the transformer with the lowest overall
lifecycle costs (TCO = total cost of ownership) can be selected.

The capitalisation of losses is considered as the best method of optimizing the economic
efficiency of the transformers.

Depending on the forecast economic conditions, the use of the capitalisation formula
can result in transformer efficiencies better than those given in the tables. In these
circumstances, using a higher efficiency transformer is appropriate.

If using the capitalisation formula would result in transformer efficiencies lower than those
in the table, then the value in the table shall be used as a minimum because this represents
a minimum standard reflecting established practices justified by long-term sustainable
environmental considerations.

The initial cost of the transformers is not the only cost, and it should be associated with
the cost of the installation under circumstances where sizes and weight are limited by
infrastructure or transport considerations. These restrictions need to be included in the
transformer specification, and the transformer optimised within these limitations.

All parameters and equations provided here represent basic explanations of the most
important parameters, such as energy price and discount rates. A deeper investigation for
each parameter by the user is recommended.

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A.2 Impact of capitalisation values

Increasing the capitalisation values will result in a decrease in losses and an increase in
initial cost, size and weight up to the point at which the cost of further decreasing the losses
equals the capitalisation values, or to the point where the extra size and weight exceeds the
limits in the specification.

It is important that relevant external factors such as carbon prices are included in the costs
saved – these may already be included in the cost of electricity through the ETS49 scheme or
may need to be added in separately.

The capitalisation values represent the avoided costs associated with the marginal cost of
energy due to no-load and load losses saved.

A.3 Capitalisation formula

A.3.1 General

To be fully relevant, capitalisation should be based on the forecast cost of energy for each
year of the transformer’s life, and on the actual losses during this period, and relate these
future cash flows to today’s money using the appropriate discount rate.

The losses used for capitalisation evaluation should include the cooling losses, with the no-
load losses for the part always on, and with the load losses for the variable part.

The total cost of ownership is then defined by:

where

IC is the initial cost of the transformer; this cost may include installation costs such as
foundation and erection costs (requires a more sophisticated evaluation);

P0 is the no-load loss (kW) measured at the rated voltage and rated frequency, on the
rated tap;

Pc0 is the cooling power (kW) needed for no-load operation;

Pk is the load loss (kW) due to the load, measured at the rated current and rated
frequency on the rated tap at a reference temperature;

Pcs is the total cooling power (kW) needed for operation at the rated power (including
three-winding operation if any);

A is the factor representing the cost of capitalisation of no-load losses in cost per kW;

B is the factor representing the cost of capitalisation of the losses due to load in cost
per kW.

In the event that different transformer technologies are used, additional differences related
to installation costs should be considered.

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A.3.2 Calculation of factor A

A is the cost of capitalisation of no-load losses in cost per kW.

The no-load losses and their associated cooling losses are present as soon as the transformer
is energized. Therefore, the capitalisation cost is the valorization cost of energy multiplied
by the operating time over the full life expectancy of the transformer as shown in Equation
(A.2):

where

O0j is the operating time of the transformer at year j in h;

Cj is the valorisation of the energy at year j in cost per Wh if losses are expressed in W;

ij is the real discount rate at year j in per unit;

n is the life expectancy of the transformer in years.

NOTE 1: Discount rates can be expressed in either real (excluding inflation) or nominal (including
inflation) terms, with both leading to identical answers providing the associated cash flows are also
expressed in similar terms. However, the use of real discount rates simplifies the calculations as it
assumes that all costs rise identically at the rate of inflation. If a particular cost rises in excess or below
inflation, for example the marginal cost of electricity, then this excess above inflation can be more easily
dealt with through a modification of the discount rate used. Accordingly, all discount rates used in this
analysis are real.

For simplification, if the discount rate is considered constant and the cost of energy (in real
terms) equal to that at the mid-life of the transformer, then assuming that the transformer
is always energized, at year n Equation (A.2) can be simplified to the form shown in Equation
(A.3):

where

Cn/2 is the evaluation of the energy at mid-life of the transformer in cost per kWh if losses
are expressed in kW;

i is the discount rate fixed over the whole life of transformer (n years);

n is the useful economic life of the transformer in years, which in the past has been close
to the transformer’s physical life expectancy (30 to 50 years).

NOTE 2: Use of Cn/2 is an approximation and overvalues the losses somewhat, but is acceptable in the
context of other uncertainties.

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A.3.3 Calculation of factor B

B is the capitalisation cost of the losses due to load. It is highly dependent on the load
profile.

The load of a transformer can usually be split between the fixed load which is constant and
present all year round, and the variable load which depends on ambient conditions and may
be present only part of the time. Figure A.1 illustrates this load split.

Figure A.1:
Load profile

For the sake of calculation, it is useful to define the average load loss factor (µ) as the square
of the RMS value of the instantaneous load factors by:

where

T is equivalent to one year; if k(t) is defined per h T is 8 760 h; if k(t) is defined per minutes
T is 525 600 min;

k(t) is the load factor as a function of time.

The load losses capitalisation cost comes as the sum of the load factors multiplied by
the cost of energy and corrected by the increase of load and the increase of transformer
installed base. In Equation (A.5), the losses are split into two parts, with each one weighted
by its time base utilization:

where

µ is the average load loss factor as defined in Equation (A.4);

Cj is the total cost of the energy at year j in cost per Wh if losses are expressed in W;

ij is the discount rate at year j in per unit;

Oaj is the operating time of the transformer at variable load during year j in h;

Ofj is the operating time of the transformer at fixed load during year j in h, usually 8 760 h
if the transformer is operated all year round;

Taj is the share of variable load in the total load loss factor at year j;

Tfj is the share of fixed load in the total load loss factor at year j;

Taj + Tfj = 1

n is the life expectancy of the transformer in years;

Cµj is the rate of load loss factor increase at year j;

Caj is the rate of installed power increase at year j.

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Usually Cµj and Caj are taken equal as zero, which corresponds to a situation where the
investment is assessed on the basis that the average loading of the transformer is invariant.
If this is not the case, special care shall be taken to avoid overloading the transformer during
a certain year, as if Cµj is greater than Caj, the final factor is greater than one.

If the transformer is energized all year round and if the cost of energy is considered
constant and equal to the energy evaluation at the mid-life of the transformer, and if usage
of the transformer is assumed as invariant during its whole life, and if the discount rate is
considered constant, then the formula can be simplified as shown in Equation (A.6):

where

µ is the average load loss factor as defined above;

Cn/2 is the valorisation of the energy at the mid-life of the transformer in cost per Wh if
losses are expressed in W;

i is the discount rate in per unit;

Oa is the operating time of the transformer at variable load in h;

Of is the operating time of the transformer at fixed load in h, usually 8 760 h if the
transformer is operated all year round;

Ta is the share of variable load in the total load loss factor;

Tf is the share of fixed load in the total load loss factor;

Ta + Tf = 1

n is the life expectancy of the transformer in years;

Cµ is the rate of load loss factor increase;

Ca is the rate of installed power increase.

As a further simplification, if the load factors and load profile are assumed to remain
constant in the future, then the formula may be simplified as shown in Equation (A.7):

For the meaning of the symbols, refer to Equation (A.5).

A.3.4 Use of A and B for tender evaluation

In a transformer enquiry, the user should give the values of A and B in terms of monetary
value per kW (for example, €/kW). This allows the manufacturer to offer the most
economical transformer taking into account the TCO implied by the capitalisation values.

During the tender evaluation process, the purchaser will evaluate each bid according to the
TCO calculated using Equation (A.1) incorporating the guarantee load and no-load losses
provided by the manufacturers.

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The transformer manufacturer will therefore optimize the TCO in such way that the value of
a reduction of losses is greater than the associated cost increase of the transformer.

The most economical transformer will be the one offering the lowest total cost of ownership
as calculated with Equation (A.1). The economical evaluation of the bids should be based on
this TCO.

A.3.5 Determination of factors A and B

Utility companies will already probably have a corporate value for factor A based on strategic
policies, energy mix, governmental and political decisions, incentives for environmental
concerns and prospective scenarios, discount rates, and investment time horizons. Factor B
is normally derived from factor A by means of standardised loading profiles.

Industrial or private customers not subject to such considerations can determine values
A and B in a simple manner with the formulae defined in this paragraph using the inputs
defined as follows.

(A.8) (A.9)

where

n is the useful economic life of the transformer in years;

Cn/2 is the forecast cost of electricity at mid useful economical life of the transformer in
terms of monetary value per kWh;

i is the discount rate set by the company as appropriate for the investment proposed
in p.u. By default, the weighted average costs of capital should be used unless an
alternative specific rate has been calculated for the investment.

NOTE: The sensitivity of the capitalization value to n decreases as n increases. The higher the cost of
the energy, the greater the savings from a lower loss level will be, thus justifying a higher initial cost of
the transformer. The lower the discount rate, the higher the present value of the losses will be. A low
discount rate justifies high spending on reducing losses.

Determining load and operating time can be simplified as, for most of the industry, the base
load is predominant and therefore Ta can be considered as negligible. The formula can then
be simplified as shown in Equation (A.10), where µ can be well approximated:

where

Sr is the rated power of the transformer;

S is the average forecast load.

In the calculation of A (see Equation (A.8)), if the transformer is not energised continuously,
the yearly 8 760 h can be adjusted to reflect the actual use of the transformer. For example,
a two-shift industry would typically have a ratio of 2/3, resulting in 5  840 h.

In the calculation of B (see Equation (A.9)), if the transformer is not loaded continuously, the
yearly 8 760 hours can be adjusted to reflect the actual use of the transformer. For example,
a two-shift industry would typically have a ratio of 2/3, resulting in 5  840 h.

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ANNEX E. IMPROVING ENERGY PERFORMANCE

OF TRANSFORMERS
A transformer can be made more energy-efficient by improving the materials of construction
(e.g. better-quality core steel or winding material) and by modifying the geometric
configuration of the core and winding assemblies. Making a transformer more energy-
efficient (i.e. reducing electrical losses) can often be a trade-off between more expensive,
lower-loss materials and designs, and the value a customer attaches to those losses. For a
given efficiency level, the no-load and load losses are generally inversely related: reducing
one usually increases the other, as shown in Table 20.

Table 19: Loss-reduction interventions for transformers

OBJECTIVE APPROACH NO-LOAD LOAD (WINDING) EFFECT

(CORE) LOSSES LOSSES ON PRICE

DECREASE Use lower-loss core materials Lower No change Higher

NO-LOAD LOSSES
Better core construction techniques Lower No change Higher

Decrease flux density by increasing Lower Higher Higher

core cross-sectional area
Decrease flux density by decreasing Lower Higher Higher
volts/turn
Decrease flux path length Lower Higher Lower
by decreasing conductor
cross-sectional area
DECREASE Use lower-loss conductor materials No change/ Lower Higher
LOAD LOSSES lower
Decrease current density by Higher Lower Higher
increasing conductor cross-
sectional area
Decrease current path length by Higher Lower Lower
decreasing core cross-sectional area
Decrease current path length by Higher Lower Lower
increasing volts/turn
Reduce core cross-section by Higher/no Lower Higher
increasing flux density through change
better core steels, reducing
conductor length

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There are five approaches to reducing no- increase the load losses. The impact
load losses shown in Table 20. One of these on price tends to be higher on account
is a material-substitution option and four of of the increased material being used in
them are transformer-design options. Each the design.
of these options is discussed briefly below:
• Decreasing the distance the magnetic
• The use of lower-loss material to flux has to travel by reducing the wire
construct the core of the transformer size will also reduce no-load losses;
will decrease the no-load losses, and however, it tends to increase load losses
very often it will have no impact on load because the current density per unit
losses. This can include, for example, cross-sectional area of the conductor
using a laser-scribed thinner lamination increases. This design option tends
of silicon steel in place of standard one, to lower the price of the transformer
or using amorphous material in the because it reduces the conductor
core instead of silicon steel. In general, material used in the design.
however, substituting with a lower-
There are five approaches outlined in Table
loss core material will result in higher
20 as techniques for decreasing load losses.
manufacturing costs. Over the last 50
For these design options, one is a material-
years, considerable advances have
substitution option and the other four are all
been made in the materials used for
design techniques. Each of these options is
transformer cores offering lower watts
discussed briefly below.
of loss per unit magnetic flux. The use of
• The use of lower-loss conductor
better core-construction techniques can
materials—specifically, using copper
also reduce no-load losses by how the
instead of aluminium windings—will
joints between the metal laminations are
decrease the winding losses and would
formed. These techniques can include,
either have no impact or reduce no-load
for example, using a distributed gap in
losses by improving the flux linking,
a wound core, or a step-lap core. These
allowing a designer to use a slightly
solutions, however, involve the use
smaller core. However, depending on
of sophisticated core-manufacturing
material prices, this approach can lead to
equipment that may, in turn, lead to an
an increase in price.
increase in price.
• Load losses can be decreased by
• Lowering the magnetic flux density by
lowering the current density in the
making the cross-sectional area of the
conductor through an increase in the
core larger is also an option available
cross-sectional area. This option of using
to transformer designers. However, by
a larger-gauge conductor will reduce
increasing the size of the core, the length
load losses but will also tend to increase
of the windings also increases, and thus
no-load losses as the core must be made
resistive losses will increase. The overall
larger for the additional conductor. This
impact on price is higher because more
design option also tends to increase price
material is used in the transformer,
because more material is used in the
in both the core and the coil, which
transformer.
also makes the transformer larger and
heavier.50 • Load losses can also be decreased by
reducing the current path length through
• Lowering the magnetic flux density by
a reduction in the cross-sectional area
decreasing the volts per turn involves
of the core. By having a smaller core, the
maintaining the same turns ratio of
transformer becomes more compact,
primary to secondary, but having more
and winding lengths can be reduced,
of each. This design approach results
lowering resistive losses in the conductor.
in longer windings, which will tend to
This will, however, tend to increase the

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losses in the core, as the magnetic flux

intensity increases per unit area. Overall,
this design option would tend to reduce
the price, as there is less physical material
being incorporated into the finished
transformer design.

• Load losses can also be reduced by

proportionally reducing the length of
conductor used in both windings, so as
to keep the same turns ratio. This design
option will tend to increase the volts per
turn of the transformer, which (within
the same insulation class) will decrease
conductor losses but tend to increase
losses in the core. As with design option
3 described above, this approach would
also tend to result in a lower price as
there is less material incorporated into
the finished product.

• Increasing flux density (permitted

through the use of better materials),
which can result in a smaller-diameter
core with lower load losses due to
smaller-diameter windings. This would
increase no-load loss in terms of watts
per kilogram, but the weight of core
would be less and could also reduce core
losses.

In practice, a combination of the above

options is used by transformer designers to
meet the desired energy performance level
at the minimum initial cost, depending on
the relative material costs prevailing at the
time.

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ANNEX F. IEC AND SEAD RECOMMENDED ENERGY

PERFORMANCE LEVELS
Tables which are common to both the IEC technical specification and the European
regulation are presented here for information (see Table 21 through 25).

Table 20: European ecodesign regulation: Minimum peak efficiency index requirements for large power
liquid-filled transformers51

POWER RATING TIER 1 (%) TIER 2 (%)

(kVA, IEC) (FROM JULY 2015) (FROM JULY 2021)

>3,150 and ≤4,000 99.465 99.532

5,000 99.483 99.548

6,300 99.510 99.571

8,000 99.535 99.593

10,000 99.560 99.615

12,500 99.588 99.640

16,000 99.615 99.663

20,000 99.639 99.684

25,000 99.657 99.700

31,500 99.671 99.712

40,000 99.684 99.724

50,000 99.696 99.734

63,000 99.709 99.745

80,000 99.723 99.758

≥100,000 99.737 99.770

Table 22 gives the draft maximum load and no-load losses for liquid-immersed medium
power transformers with the high voltage winding rated as 24 kV and below and the
secondary winding at 1.1 kV and below. Note too that the Commission is considering to allow
higher (greater) losses for pole-mounted transformers that are not shown in this table.

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Table 21: European ecodesign regulation: maximum full load losses for medium power liquid-filled power transformers52

TIER 1 (FROM JULY 2015) TIER 2 (FROM JULY 2021)

POWER RATING
(kVA, IEC) MAXIMUM LOAD MAXIMUM MAXIMUM LOAD MAXIMUM
LOSSES (W) NO-LOAD LOSSES (W) LOSSES (W) NO-LOAD LOSSES (W)

≤25 900 70 600 63

50 1,100 90 750 81

100 1,750 145 1,250 130

160 2,350 210 1,750 189

250 3,250 300 2,350 270

315 3,900 360 2,800 324

400 4,600 430 3,250 387

500 5,500 510 3,900 459

630 6,500 600 4,600 540

800 8,400 650 6,000 585

1,000 10,500 770 7,600 693

1,250 11,000 950 9,500 855

1,600 14,000 1,200 12,000 1,080

2,000 18,000 1,450 15,000 1,305

2,500 22,000 1,750 18,500 1,575

3,150 27,500 2,200 23,000 1,980

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Table 23 gives the draft maximum load and no-load losses for dry-type medium power
transformers with the high voltage winding rated as 24 kV and below and the secondary
winding at 1.1 kV and below.

Table 22: European ecodesign regulation: maximum full load losses for medium power dry-type power transformers53

TIER 1 (FROM JULY 2015) TIER 2 (FROM JULY 2021)

POWER RATING
(kVA, IEC) MAXIMUM LOAD MAXIMUM MAXIMUM LOAD MAXIMUM
LOSSES (W) NO-LOAD LOSSES (W) LOSSES (W) NO-LOAD LOSSES (W)

≤50 1,700 200 1,500 180

100 2,050 280 1,800 252

160 2,900 400 2,600 360

250 3,800 520 3,400 468

400 5,500 750 4,500 675

630 7,600 1,100 7,100 990

800 8,000 1,300 8,000 1,170

1,000 9,000 1,550 9,000 1,395

1,250 11,000 1,800 11,000 1,620

1,600 13,000 2,200 13,000 1,980

2,000 16,000 2,600 16,000 2,340

2,500 19,000 3,100 19,000 2,790

3,150 22,000 3,800 22,000 3,420

2,000 18,000 1,450 15,000 1,305

2,500 22,000 1,750 18,500 1,575

3,150 27,500 2,200 23,000 1,980

Within the IEC TS/60076-20:2017 technical specification, there are other tables of peak-
efficiency indexes and maximum losses at both 50 Hz and 60 Hz, and other indices, including
the SEAD energy efficiency performance tiers for distribution transformers which are listed
in Annex B of IEC 60076-20:2017.

The SEAD tiers offer another basis for establishing requirements for distribution transformers
and were developed through an international survey conducted by SEAD of 13 distribution
transformer regulatory programmes around the world. The following table presents the set
of equations developed for both liquid-filled and dry-type transformers in single-phase and
three-phase configurations. These equations yield a percentage efficiency at 50 per cent of
rated load for 50Hz operation and the IEC definition of power rating (kVA). There were four
equations developed for each group of distribution transformer, with Tier 1 being the least
efficient and Tier 4 being the most efficient. A Tier 5 level was added by SEAD as an indicator
of a future premium-efficiency level for market-pull programmes.

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Table 23: SEAD efficiency equations for distribution transformers, 50Hz and IEC rated power (%)54

TRANSFORMER
TIER 1 TIER 2 TIER 3 TIER 4 (TIER 5)
TYPE
0.0370 0.0311 0.0270 0.0226 0.0193
LIQUID-FILLED =1– =1– =1– =1– =1–
THREE-PHASE S0.22 S0.22 S0.22 S0.22 S0.22

0.0355 0.0295 0.0254 0.0210 0.0169

LIQUID-FILLED =1– =1– =1– =1– =1–
SINGLE-PHASE S0.22 S0.22 S0.22 S0.22 S0.22

0.0628 0.0514 0.0425 0.0355 0.0292

DRY-TYPE =1– =1– =1– =1– =1–
THREE-PHASE S0.26 S0.26 S0.26 S0.26 S0.26

0.0620 0.0490 0.0412 0.0351 0.0310

DRY-TYPE =1– =1– =1– =1– =1–
SINGLE-PHASE S0.30 S0.30 S0.30 S0.30 S0.30

Table 24: SEAD efficiency equations for distribution transformers, 60Hz and IEEE rated power (%)55

TRANSFORMER
TIER 1 TIER 2 TIER 3 TIER 4 (TIER 5)
TYPE
0.03584 0.03019 0.02627 0.02203 0.01851
LIQUID-FILLED =1– =1– =1– =1– =1–
THREE-PHASE S0.227 S0.227 S0.227 S0.227 S0.227

0.0346 0.02899 0.02476 0.02031 0.01649

LIQUID-FILLED =1– =1– =1– =1– =1–
SINGLE-PHASE S0.227 S0.227 S0.227 S0.227 S0.227

0.06352 0.0527 0.04383 0.03682 0.03045

DRY-TYPE =1– =1– =1– =1– =1–
THREE-PHASE S0.26 S0.26 S0.26 S0.26 S0.26

0.04044 0.03132 0.02585 0.02169 0.01896

DRY-TYPE =1– =1– =1– =1– =1–
SINGLE-PHASE S0.30 S0.30 S0.30 S0.30 S0.30

For more information on the SEAD study, please visit the CLASP website available at
http://clasp.ngo/en/Resources/Resources/PublicationLibrary/2014/SEAD-Analyzes-
Potential-for-Alignment-of-Distribution-Transformer-Efficiency-Levels

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FOOTNOTES
1 BIOIS and VITO (2011) Preparatory Study – current will decrease proportionally, holding
Transformers; Final Report, Lot 2: Distribution power constant. Since losses in transmission
and power transformers, Tasks 1 – 7; 2010/ETE/ and distribution power lines are directly
R106. proportional to the current being carried in
the wire, increasing the voltage can reduce
2 Electrical power is equal to voltage times losses associated with the transmission and
current. Holding power constant, if the distribution of electrical energy.
voltage is increased, the current will decrease
proportionally. Since losses in transmission 14 U4E (2017) Adapted from design by MBizon
and distribution power lines are directly available at: https://en.wikipedia.org/wiki/
proportional to the square of the current Electrical_grid#/media/File:Electricity_Grid_
carried in the wire, increasing the voltage and Schematic_English.svg
reducing the current reduces losses associated
with the transmission and distribution of 15 BIOIS and VITO (2011) Preparatory Study –
electrical energy. Transformers; Final Report, Lot 2: Distribution
and power transformers, Tasks 1 – 7;, 2010/
3 U4E (2017) Adapted from design by MBizon
ETE/R/106.
available at: https://en.wikipedia.org/wiki/
Electrical_grid#/media/File:Electricity_Grid_ 16 UN Environment (2017) Estimate based on
Schematic_English.svg country transformer market assessment.
4 Attention should be given to fire resistant 17 UN Environment (2017) Estimate based on
oils which contain polychlorinated biphenyls country transformer market assessment.
(PCBs). PCBs are a fire-suppression additive
historically in common use for transformer oils: 18 UN Environment (2017) Global market model
they are now banned under the Stockholm to calculate energy savings potential of power
Convention. transformers.

5 kVA is an abbreviation for kilovolt-ampere, and 19 Goulden Reports (2015) The World Markets for
is a measure of the rated power (i.e. capacity) Transformers 2015 to 2025.
that a transformer is designed to handle.
20 US Department of Energy’s (DOE) Energy
6 U4E (2007) UN Environment estimate, based on Information Administration (2015) International
country transformer market assessment. Energy Outlook. IEA, 2014, World Energy
Outlook 2014.
7 Ibid.
21 UN Environment (2017) Global market model
8 UN Environment (2017) Global market model to calculate energy savings potential of power
to calculate energy savings potential of power transformers.
transformers,
22 UN Environment (2017) Global market model
9 HEPS are published performance levels that to calculate energy savings potential of power
are more ambitious than MEPS but are not transformers.
mandatory. Governments tend to publish these
to establish a ‘premium’ level that can used for 23 European Commission (2014) EC regulation
market pull programmes such as tax rebates No 548/2014 of 21 May 2014 implementing
and incentive schemes. In some countries, Directive 2009/125/EC of the European
HEPS are indicative of future MEPS, providing Parliament and of the Council with regard to
the industry with advance notice of the small, medium and large power transformers.
direction that the government wishes to take Available at http://eur-lex.europa.eu/legal-
the market. content/EN/TXT/?qid=1440506867412&uri=
CELEX:32014R0548 .
10 U4E (2017) Adapted from “SEAD Standards
& Labelling Working Group Distribution 24 N14 Energy Limited, TR & JR Blackburn
Transformers Collaboration: Part 1: Comparison Consulting, HVOLT Inc. and EMS International
of Efficiency Programmes for Distribution Consulting (2013) SEAD Standards & Labelling
Transformers: A report citing the similarities Working Group Distribution Transformers
and differences amongst the available Collaboration, Part 1: Comparison of Efficiency
distribution transformer test methods and Programmes for Distribution Transformers.
efficiency levels.” December 2013.
25 Super-efficient Equipment and Appliance
11 Goulden Reports (2015) The World Markets for Deployment (SEAD) initiative (2013) SEAD
Transformers 2015 to 2025. Standards & Labelling Working Group
Distribution Transformers Collaboration: Part
12 For more information see: http://chm.pops.int/ 1: Comparison of Efficiency Programmes for
Implementation/PCBs/Guidance/tabid/665/ Distribution Transformers: A report citing
Default.aspx the similarities and differences amongst
the available distribution transformer test
13 Electrical power is equal to voltage times
methods and efficiency levels. Available at
current. If the voltage is increased, the
http://clasp.ngo/en/Resources/Resources/

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 ENERGY-EFFICIENT TRANSFORMERS 100

PublicationLibrary/2014/SEAD-Analyzes- 35 Financing large-scale elements such as

Potential-for-Alignment-of-Distribution- end-of-life recovery and recycling of used
Transformer-Efficiency-Levels transformers could also be sourced internally,
through extended producer responsibility (EPR)
26 Super-efficient Equipment and Appliance approaches or other means.
Deployment (SEAD) initiative (2013) SEAD
Standards & Labelling Working Group 36 PCBs are banned by the Stockholm Convention
Distribution Transformers Collaboration: Part on Persistent Organic Pollutants. There are 176
1: Comparison of Efficiency Programmes for signatories to the Convention, and all parties
Distribution Transformers: A report citing are required to eliminate the use of PCBs in
the similarities and differences amongst existing equipment by 2025 and ensure their
the available distribution transformer test environmentally sound waste management by
methods and efficiency levels. Available at 2028.
http://clasp.ngo/en/Resources/Resources/
PublicationLibrary/2014/SEAD-Analyzes- 37 UN Environment (2016) Efficient Lighting
Potential-for-Alignment-of-Distribution- Market Baselines and Assessment, Guidance
Transformer-Efficiency-Levels Note. Available at http://www.enlighten-
initiative.org/portals/0/documents/
27 N14 Energy Limited, TR & JR Blackburn Resources/publications/Efficient_lighting_
Consulting, HVOLT Inc. and EMS International market_baselines_and_assessment_February
Consulting (2013) SEAD Standards & Labelling 2016.pdf
Working Group Distribution Transformers
Collaboration, Part 1: Comparison of Efficiency 38 UN Environment (2016) Developing Lighting
Programmes for Distribution Transformers. Product Registration Systems, Guidance Note.
Available at http://www.enlighten-initiative.
28 Super-efficient Equipment and Appliance org/portals/0/documents/Resources/
Deployment (SEAD) initiative (2013) SEAD publications/Developing_lighting_product
Standards & Labelling Working Group registration_systems_February 2016.pdf
Distribution Transformers Collaboration: Part
1: Comparison of Efficiency Programmes for 39 The use of existing lab capacities which are
Distribution Transformers: A report citing recognised according to the IECEE scheme
the similarities and differences amongst ensures a defined level of quality and accuracy,
the available distribution transformer test and allows for international acceptance of test
methods and efficiency levels. Available at results. IECEE, the IEC System for Conformity
http://clasp.ngo/en/Resources/Resources/ Assessment Schemes for Electrotechnical
PublicationLibrary/2014/SEAD-Analyzes- Equipment and Components, is a multilateral
Potential-for-Alignment-of-Distribution- certification system based on IEC International
Transformer-Efficiency-Levels Standards. Its Members use the principle of
mutual recognition (reciprocal acceptance) of
29 For more information see: https://webstore.iec. test results to obtain certification or approval
ch at national levels around the world. For more
information see: http://www.iecee.org/index.
30 This technical specification (IEC TS/60076-20) htm
can be purchased at IEC’s website available
at https://webstore.iec.ch/publication/28063 40 UN Environment (2016) Performance Testing of
Several of the tables in the IEC standard Lighting Products, Guidance Note. Available at
also appear in the 2014 European Ecodesign http://www.enlighten-initiative.org/portals/0/
regulation (EU No. 548/2014). The tables documents/Resources/publications/
that are common to both the IEC technical Performance_testing_of_lighting_products_
specification and the EU regulation are February 2016.pdf
presented in Annex F.
41 UN Environment (2016)
31 For more information see: www.clasp.ngo
42 UN Environment (2016) Enforcing Efficient
32 The portal is available at http://copperalliance. Lighting Regulations, Guidance Note.
org.uk/education-and-careers/education- Available at http://www.enlighten-initiative.
resources/copper-and-electricity- org/portals/0/documents/Resources/
transformers-and-the-grid publications/Enforcing Efficient Lighting
Regulations_February 2016.pdf
33 The calculator is available at http://www.abb.
com/product/ap/db0003db004283/f4a2f3685 43 e.g. Miro Hegedic, Tihomir Opetuk, Goran Dukic
5184744c125772700291244.aspx of University of Zagreb and Hrvoje Draskovic
of Koncar-Power Transformers Ltd., Zagreb,
34 PCBs are banned by the Stockholm Convention Croatia (2016) Life Cycle Assessment of Power
on Persistent Organic Pollutants. There are 176 Transformer Case Study. Available at https://
signatories to the Convention, and all parties bib.irb.hr/datoteka/824494.Life_cycle_
are required to eliminate the use of PCBs in assessment_of_power_transformer-case_
existing equipment by 2025 and ensure their study.pdf
environmentally sound waste management by
2028.

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 ENERGY-EFFICIENT TRANSFORMERS 101

44 Available at http://wedocs.unep.org/ 52 This European ecodesign table is the same

bitstream/handle/20.500.11822/13664/ “Table 4 – Maximum load losses and maximum
Consolidated%20PCB%20Assessment_2016. no load losses for transformers with rated
pdf?sequence=1&isAllowed=y frequency equal to 50 Hz” found in with IEC
TS/60076-20:2017.
45 Available at http://www.unep.org/
chemicalsandwaste/what-we-do/science- 53 This European ecodesign table is the same as
and-knowledge/persistent-organic-pollutants- IEC TS/60076-20:2017 Table 10 – Maximum
pops/pcb-forgotten-legacy load loss and maximum no load loss for
transformers with rated frequency equal to 50
46 Focal Point listing available at http://chm.pops. Hz.
int/Countries/CountryContacts/tabid/304/
Default.aspx 54 These SEAD recommended tier equations is
the same as “Table B.1 – Efficiency equations
47 Available at http://chm. for transformers with a primary voltage of 36
pops.int/Implementation/ kV and below, from 5 kVA to 1000 kVA single-
NationalImplementationPlans/ phase and 15 kVA to 3,150 kVA three-phase, 50
NIPTransmission/tabid/253/Default.aspx Hz and 50 per cent load method A” found in
with IEC TS/60076-20:2017.
48 Examples of small and special transformers
not covered under 60076-1 are: (1) single- 55 These SEAD recommended tier equations is
phase transformers with rated power less the same as “Table B.2 – Efficiency equations
than 1 kVA and three-phase transformers less for transformers with a primary voltage of 36
than 5 kVA; (2) transformers, which have no kV and below, from 5 kVA to 1000 kVA single-
windings with rated voltage higher than 1 000 phase and 15 kVA to 3,150 kVA three-phase, 60
V; (3) instrument transformers; (4) traction Hz and 50 per cent load method B” found in
transformers mounted on rolling stock; (5) with IEC TS/60076-20:2017.
starting transformers; (6) testing transformers;
(7) welding transformers; (8) explosion-proof
and mining transformers; and (9) transformers
for deep water (submerged) applications.

49 ETS: Emissions Trading System. The overall

carbon content of electricity in Europe is
controlled at an EU level through the ETS. This
means that pan-European measures are used
for controlling CO2, as any national measures
which are applied to reduce CO2 simply provide
scope for other countries to increase their
CO2 emissions to take advantage of the extra
headroom then made available. Inclusion
of CO2 costs in the price of electricity is one
measure to encourage CO2 reductions without
having dysfunctional effects.

50 The weight of a transformer can have an

impact on installation. For example, a pole-
mounted installation may be rated for a
specific weight, and in certain situations, it may
be replaced by a more efficient transformer
that is heavier, requiring modifications to the
installation site increasing costs.

51 This European ecodesign table is the same

as “Table 3 – PEI values for transformers with
Um > 36 kV or Sr >3 150 kVA” found in with IEC
TS/60076-20:2017.

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PHOTO CREDITS
ABB....................................................................................................................................... 3, 8, 24, 57, 71

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