1.

Introduction
Transformer is device that transfers electric energy from one alternating-
current circuit to one or more other circuits, either increasing (stepping
up) or reducing (stepping down) the voltage. Transformers are employed
for widely varying purposes; e.g., to reduce the voltage of conventional
power circuits to operate low-voltage devices, such as doorbells and toy
electric trains, and to raise the voltage from electric generators so
that electric power can be transmitted over long distances.

Transformers change voltage through electromagnetic induction; i.e., as

the magnetic lines of force (flux lines) build up and collapse with the
changes in current passing through the primary coil, current is induced in
another coil, called the secondary. The secondary voltage is calculated by
multiplying the primary voltage by the ratio of the number of turns in the
secondary coil to the number of turns in the primary coil, a quantity
called the turns ratio.

One of the main reasons that we use alternating AC voltages and currents
in our homes and workplace’s is that AC supplies can be easily generated
at a convenient voltage, transformed (hence the name transformer) into
much higher voltages and then distributed around the country using a
national grid of pylons and cables over very long distances.

The reason for transforming the voltage to a much higher level is that
higher distribution voltages implies lower currents for the same power
and therefore lower I2*R losses along the networked grid of cables.
These higher AC transmission voltages and currents can then be reduced
to a much lower, safer and usable voltage level where it can be used to
supply electrical equipment in our homes and workplaces, and all this is
possible thanks to the basic Voltage Transformer.

2. Executive Summary
This profile contemplates the establishment of a plant for the production
of transformers with a capacity of 3000 per year.

Home to 12 major rivers and the sources of the rivers Niger, Gambia and
Senegal, Guinea has some of the highest potential for hydropower in
West Africa, with a gross theoretical hydropower potential of at least
31,444 GWh/year.

The technically feasible potential is around 25,155 GWh/year, and the

economically feasible potential is estimated to be 20,124 GWh/year.
More than 7180 MW of capacity could be developed, which would
provide for the production of 20,000 GWh/year (see H&D World Atlas,
2017).

The further development of Guinea’s significant hydropower resources is

expected to play a major role in meeting growing electricity demand in
the country, amid forecasts of substantial economic and population
growth. The IMF forecasts a 5.8 per cent rise in GDP in 2018 and 5.9 per
cent in 2019, while the population is anticipated to increase to an
estimated 14.7 million in 2022, from 13.2 million in 2018. Hydro
development will also help meet the Government’s commitments to
reducing greenhouse gas emissions by increasing the share of renewable
energy in the generation mix and supporting long-standing plans for a
regional grid and increased power trading in West Africa.
One of the key projects is the 450 MW Souapiti storage plant on the river
Konkouré, for which the China EximBank has just approved US$ 1.3
billion in financing.

Providing greater power for the domestic market is crucial to the

country’s economic growth and political stability, given frequent protests
over power shortages. Access to electricity in the country is very low:
around 25 per cent in urban areas, and only 4 per cent in rural areas
(H&D World Atlas, 2017). This shows that there is a wide range of
electric expansion in Guinea. It is indeed a great opportunity to
manufacture transformers and supply to these infrastructure expansion.
The present demand for the proposed product is estimated at 30,000 per
year. Considering the fast expansion of construction, the demand is
expected to reach at 50,000 by the year 2023.

The total investment requirement is estimated at $1.7 million out of

which --------- is required for plant and machinery. The plant will create
employment opportunities for -------- persons.

3. Product Description and Application

The product that this business proposal is implying is Transformer. The
working principle of a transformer is very simple. Mutual induction
between two or more windings (also known as coils) allows for electrical
energy to be transferred between circuits. Say you have one winding (also
known as a coil) which is supplied by an alternating electrical source. The
alternating current through the winding produces a continually changing
and alternating flux that surrounds the winding.
If another winding is brought close to this winding, some portion of this
alternating flux will link with the second winding. As this flux is
continually changing in its amplitude and direction, there must be a
changing flux linkage in the second winding or coil.
According to Faraday’s law of electromagnetic induction, there will be an
EMF induced in the second winding. If the circuit of this secondary
winding is closed, then a current will flow through it. This is the basic
working principle of a transformer. Let us use electrical symbols to help
visualize this. The winding which receives electrical power from the
source is known as the ‘primary winding’. In the diagram below this is
the ‘First Coil’. The winding which gives the desired output voltage due
to mutual induction is commonly known as the ‘secondary winding’.

Figure 2.1 Winding of transformer

A transformer that increases voltage between the primary to secondary

windings is defined as a step-up transformer. Conversely, a transformer
that decreases voltage between the primary to secondary windings is
defined as a step-down transformer. Whether the transformer increases or
decreases the voltage level depends on the relative number of turns
between the primary and secondary side of the transformer.
If there are more turns on the primary coil than the secondary coil than
the voltage will decrease (step down). If there are less turns on the
primary coil than the secondary coil than the voltage will increase (step
up).

While the diagram of the transformer above is theoretically possible in an

ideal transformer – it is not very practical. This is because in the open air
only a very tiny portion of the flux produced from the first coil will link
with the second coil. So the current that flows through the closed circuit
connected to the secondary winding will be extremely small (and difficult
to measure).

The rate of change of flux linkage depends upon the amount of linked
flux with the second winding. So ideally almost all of the flux of primary
winding should link to the secondary winding. This is effectively and
efficiently done by using a core type transformer. This provides a low
reluctance path common to both of the windings.
 Figure 2.2 Leakage flux of a transformer

The purpose of the transformer core is to provide a low reluctance path,

through which the maximum amount of flux produced by the primary
winding is passed through and linked with the secondary winding.
The current that initially passes through the transformer when it is
switched on is known as the transformer inrush current.
Main Parts of a transformer
The three main parts of a transformer:
 Primary Winding of Transformer: This the winding that produces
magnetic flux when it is connected to an electrical source.
 Magnetic Core of Transformer: The magnetic flux produced by the
primary winding, that will pass through this low reluctance path
linked with secondary winding and create a closed magnetic circuit.
 Secondary Winding of Transformer: The flux, produced by primary
winding, passes through the core, will link with the secondary
winding. This winding also wounds on the same core and gives the
desired output of the transformer.
 Figure 3.3 Installed Transformer

Uses and Application of Transformer

The most important uses and application of Transformer are:

 It can rise or lower the level of level of Voltage or Current

( when voltage increases, current decreases and vice virsa because P
=V x I, and Power is same ) in an AC Circuit.
 It can increase or decrease the value of capacitor, an inductor or
resistance in an AC circuit. It can thus act as an impedance
transferring device.
 It can be used to prevent DC from passing from one circuit to the
other.
 It can isolate two circuits electrically.

Transformer is the main reason to transmit and distribute power in AC

instead of DC, because Transformer not work on DC so there are too
difficulties to transmit power in DC. in the DC Transition and
distribution, the level of voltage Step up by Buck and Boost Converter
but it is too costly and not suitable economically.
The main application of Transformer is to Step up ( Increase) or Step
down (Decrease) the level of Voltage.
in other words, Increase or decries the level of Current, while Power must
be same.

Other Uses and application of Transformer:

 It steps up the level of voltage at generation side before transmission

and distribution.

 In distribution side, for commercial or domestic use of electricity,

transformer step down ( decries) the level of voltage for example
form 11kV to 220 V single phase and 440 V three phase. The Current
Transformer and Potential Transformer also used power system and
in the industry.
 Also, it is used for impedance matching. So these were the simple
uses and application of transformer.

3.1 Product Types

In Electrical, the Power domain deals with the power generation,
measurement, and distribution. However, it is a very large field where
transformers are an essential part to accommodate safe power conversion
and successful power delivery to the substation and to the end users.

The transformers which are used in the power domain can be both
outdoor and indoor but mostly outdoor.

(a) Power Transformer

Power Transformers are larger in size and used to transfer the energy to
the substation or the public electricity supply. This transformer acts as a
bridge between the power generator and the primary distribution grid.
Depending on the Power rating and specification, Power transformers can
further be classified into three categories: Small power transformer,
Medium Power transformers, and the Large power transformers. The
rating can be more than 30KVA to the 500-700KVA or in some cases
that can be equal to or more than 7000KVA for small rated power
transformer. The medium rated power transformer can be up to 50-100
MVA whereas large rated power transformers are capable to handle more
than 100MVA.

Figure 3.1.1 Power Transformer

Due to very high power generation, the construction of a power

transformer is also critical. The construction includes solid insulating
peripherals and well balanced cooling system. The most common power
transformers are filled with oils.

The main principle of the power transformer is to convert the Low

voltage high current to a high voltage low current. This is required to
minimize the power loss in the power distribution system.

Another important parameter for the Power transformer is the phase

availability. Typically Power transformers works in three phase system,
but in some cases, Single phase small power transformers are also used.
Three Phase Power transformers are the most costly and efficient than the
single phase power transformers.

(b) Measurement Transformer

Measurement transformer is often referred to as an instrument
transformer. This is another commonly used measurement instrument in
the power domain. A measurement transformer is used to isolate the main
power and convert the current and voltage in a smaller ratio to its
secondary output. By measuring the output, the Phase, Current and
Voltage of the actual power line can be measured.
 Figure 3.1.2 Measurement Transformer

(c) Distribution Transformer

This is used in the last phase of the power distribution system.
Distribution transformers are step down transformer, which converts
High grid voltage to the end customer required voltage, 110V or 230V. It
can also be single phase or three phases.
 Figure 3.1.3 Distribution Transformer

Distribution transformers can be smaller in shape as well as bigger,

depending on the conversion capacity or ratings.

Distribution transformers can be further categorized into based on the

type of insulation it uses. It can be a dry type or can be liquid-immersed.
It is made using laminated steel plates mostly constructed in C shape as a
core material.

Distribution transformer also has a different type of classification based

on the location it is used. The transformer can be mounted on a utility
pole, if so, it is called a pole mounted distribution transformers. It can be
placed inside of an underground chamber, mounted on a concrete pad
(pad mounted distribution transformer) or inside an enclosed steel box.

Generally, distribution transformers have a rating of less than 200kVA.

4. Project Objectives and benefits

The main objective of the project is aimed at to maximize the
return on invested capital in the form of profit for the promoter. However,
its implementation will benefit the employee, the society, the government
at different levels and ultimately the overall wellbieng of the country
including econ omic and social security wellbeing. In this respect the
project is aimed to promote the following objectives: -
 To maximize the return on invested capital through transformer
manufacturing firm
 To reduce the interruption of power in the country thereby raising its
contribution to the national economic development,
 To distribute transformers at competitive prices
 Keeping the society’s safety at high level for its wellbeing
 To provide gainful employment opprtunity to a large segment of the
population of the project area and augment earning capacity at the
grassroots level,
 Increase government revenue through the different forms of taxes,
which in turn used to facilitate social and economic development.
In general, the project is believed to have significant social and
economic benefits that accrue to the society, the region and the country
beyond the financial returns to its owner.
5. Project location
The choice of the generator manufacturing plant establishment
should consider the following major factors to select the appropriate site:
 Accessibility network to the main market centers;
 Possible environmental impact including sound
 Availability of skilled/unskilled labour
 Near where similar plants are established for easy training and
experience sharing
Accordingly, XYZ company has set the location of the Generator
manufacturing factory to be in ABC area, which is in …

6. Industry Analysis
Rising electricity consumption across the globe has significantly
accelerated the growth of power transformer market especially in
developing countries. The emerging markets in Latin America, Asia and
Africa have a major influence on the growth of transformers market and
currently dominating the demand for power transformers. The rapid
build-out in the Asian countries such as India, China and other emerging
countries has created a boom period for power transformers during the
first decade of 21st century. Further, the government initiative in
developing regions for modernizing the existing grids coupled with
installation of advanced and new power transformers is likely to drive the
power transformer market growth.

Goldstein Market Intelligence analyst forecast the global power

transformer market to grow at a CAGR of 5.7% during the period 2017-
2030. Further, the global power transformer market is predicted to reach
USD 34.6 billion by the end of forecast period.

6.1 Supply Analysis