ENGINEER -- Vol.

ENGINEER Vol. XLIX,

XLIX, No.
No. 03,
03, pp.
pp. [11-20], 2016 2016
[page range],
© The
© The Institution
Institution of
of Engineers,
Engineers, Sri
Sri Lanka
Lanka

Determination of Capitalization Values for

No Load Loss and Load Loss in
Distribution Transformers
W.D.A.S. Wijayapala, S.R.K. Gamage and H.M.S.L.G. Bandara

Abstract: A large number of distribution transformers are being currently used in the
electricity distribution network in Sri Lanka. When purchasing them, it is not sufficient to evaluate
only the initial price of the transformer. There are no load losses as well as load losses in the
transformer during its life span, which is about 35 years. Therefore, a transformer purchaser has to
evaluate the total lifetime cost of the transformer, which includes its purchase price, and the cost of
losses that can occur during the life of the transformer. Traditionally, this evaluation has been done
based on the Total Owning Cost (TOC). This paper discusses setting up of a methodology to calculate
capitalization values for losses in distribution transformers used in Sri Lanka, using IEEE loss
evaluation guide.

Capitalization values for distribution transformers depend on capacity and energy costs, economic
considerations and on their load profiles. In this research, capitalization values are calculated for three
different load profiles of the transformers installed in rural, semi-urban and urban areas of Sri Lanka.
In future, any utility can purchase distribution transformers by calculating capitalization values using
the methodology presented in this study which is based on a set of economic and other parameters
suitable for different applications, i.e. rural electrification, loss reduction in urban cities, augmentation
of distribution transformers, etc.

Keywords: Transformer, Total owning cost, No-load loss, Load loss

1. Introduction maintaining their efficiencies usually above

1.1 Background 98%. Table 1 shows some of the calculated
efficiency values for a few selected capacities
Utilities and licensees for power transmission of distribution transformers.
and distribution are always looking out for the
betterment of their transmission and Table 1 - Calculated Efficiency Values for
distribution systems' efficiencies by reducing Distribution Transformers used by the CEB
system losses. Increased system voltage, use of
conductors of lower resistance and having a Efficiency at
larger current carrying capacity, load No
Transformer Load 0.5 per unit
balancing or phase balancing, addition of Load
Rating Loss load of
separate lines or feeders, use of energy Loss
(kVA) (W) nameplate
efficient transformers, improving of the (W)
rating
system power factor by adding shunt
capacitors and the reconfiguration of the 100 340 1900 98.40 %
electricity network are some of the strategies 160 460 2450 98.68 %
that are used commonly to reduce
transmission and distribution losses . 250 610 3150 98.89 %

Some of the above mentioned modifications 400 870 4000 99.07 %

can be implemented more easily than others. Eng. W.D.A.S. Wijayapala, Int.PEng(SL), CEng, FIE(Sri
For instance, it does not take a great deal of Lanka), BSc Eng (Hons) (Moratuwa), MEng (Moratuwa),
technical expertise to replace a transformer, Senior Lecturer, Department of Electrical Engineering,
although technical background at a higher University of Moratuwa.

level would be necessary to design a highly Eng. S.R.K. Gamage, CEng, MIE(Sri Lanka), BSc Eng
efficient and cost optimized transformer. (Moratuwa), MSc (Moratuwa), MFE (Colombo), Deputy
Transformers act as passive devices for General Manager (BOS), Ceylon Electricity Board.
transforming voltage and current. At the same Eng. H.M.S.L.G. Bandara, AMIE(Sri Lanka), BSc Eng
time, transformers assist the electrical power (Moratuwa), MSc (Moratuwa), Maintenance Engineer
system to operate more efficiently by (Sabaragamuwa Province), Ceylon Electricity Board.

11
1
In electricity networks, two types of difficult to determine load losses because of
transformers are used, They are the substation the difficulty of anticipating the load pattern.
type and the distribution type. Substation type This requires the analysis of the peak load as
transformers are built to step-up voltage from well as the load factor. The most significant
low voltage at the generator end to high load loss component is the I2R loss or the
voltage at the transmission system and also for copper loss [2].
stepping down voltage to distribute energy
among various loads in transmission and 1.3 Determination of Losses in the
distribution systems. Distribution transformers Distribution Transformers
are used to step down the voltage to the The value of the no load losses and the value
distribution level voltage for households as of the load losses must be calculated
well as for commercial and industrial throughout the total life span of a distribution
consumers. transformer (In the CEB, the life span of a
distribution transformer is considered as thirty
Distribution transformers are smaller in five (35) years) [3]. Therefore, the purchasing
capacity but larger in quantity (181 numbers of party has to calculate the cost of losses
substation transformers and 25,452 numbers of throughout the transformer lifetime to take
distribution transformers were in the CEB account of the total value of losses in the
network at the end of 2013) [1]. Since there are distribution transformers. On the other hand,
a large number of distribution transformers in the manufacturing cost of a distribution
use, small losses in each add up to a significant transformer is increased when it's no load and
total. load losses are lowered.

1.2 Losses in Distribution Transformers 1.4 Transformer Economics

Losses in a distribution transformer can be Transformer economics is necessary to weigh
divided into two categories; no load losses and the transformer cost against the benefits of its
load losses. No load losses occur in the core of efficiency. The time value of money over the
the transformer at all times regardless of load. life cycle of the alternatives needs to be
Load losses occur in the transformer only evaluated. Efficiency improvements to save
when the transformer is loaded and they vary losses throughout the transformer lifetime
according to the square of the load current, the must be compared with the initial cost of the
most significant cause for load losses being I2R transformer. Basically, there are three types of
losses or copper losses. standard methods for evaluating alternative
transformer choices, i.e., equivalent investment
No load losses occur whenever a voltage is cost, levelized annual cost and present worth
applied to a transformer regardless of the method. Each one of these methods is applied
loading on the transformer. No load loss in a to the initial cost of the distribution
distribution transformer has five components, transformer and to the cost of no load losses
i.e., hysteresis losses in core laminations, eddy and load losses. The selection of the most
current losses in the core laminations, I2R economical method should have no effect on
losses due to no load current, stray eddy the decision on the type of transformer to be
current losses in core clamps, bolts and other bought.
core components and dielectric losses. Stray
eddy current losses, dielectric losses and I2R Life cycle costing is the fundamental concept
losses due to no load current are very small used to derive the Total Owning Cost (TOC).
when compared to other losses. Therefore, This involves the calculation of the total
those losses can often be neglected. Hysteresis ownership cost over the life span of the
losses and eddy current losses on the other transformer. Then the purchaser can compare
hand contribute to over 99% of the no load loss the cost of losses with the initial cost at the
[2]. time of purchasing of the transformer.
Normally, the transformer life cycle is
The second type of loss component is the load considered as its expected life before it fails or
loss, which depends on the loading pattern of replaced.
the distribution transformer. It consists of heat
losses in the conductors caused by the load TOC  Bid Value  NLL   A  LL   B ..... (1)
current and eddy currents in the conductors. where, NLL = No Load Loss
These losses increase as the operating LL = Load Loss
temperature increases. Therefore, it is often

2
12
A=Capitalization value of NLL (LKR/W) the purchasing process. Instead. the CEB
B=Capitalization value of LL (LKR/W) indicates fixed values for no load losses and
load losses in the distribution transformer
The transformer cost and the efficiency are the specifications [6].
main two factors to be considered in
purchasing a transformer. The transformer The absence of capitalization values for
purchaser tries to optimize the losses in the distribution transformers has been identified
power system by selecting the most cost as a problem by the utility operators.
effective and energy efficient transformers.
During the transformer manufacturing 2. Methodology
process, designers can design a transformer of
high cost and high efficiency or one of low cost 2.1 Capitalization Value of No Load
and low efficiency both meeting specified losses and Load Losses
performance characteristics such as The capitalisation value for no load loss “A”
impedance, temperature rise, noise levels etc. (in LKR/W or USD/W) is the value of a unit
A highly efficient transformer while having an no load loss of a distribution transformer
initially high cost will have a low cost related throughout its life span. This value depends on
to lifetime losses while a less efficient the cost of capacity and energy required to
transformer will be cheap to produce but will generate, transmit and distribute no load
have a high cost related to lifetime losses. transformer losses. Equation 2 [7] shows the
Thus the need arises to produce an optimised factors used to calculate the no load loss
transformer suitable for a power system capitalization value “A”. This value does not
considering the desired technical parameters depend on the loading pattern of the
and economic conditions prevailing in the transformer. The capitalization value of no
country. load losses is same throughout the life span of
the distribution transformer. No load losses
Transformer designers use the concept of total are constant from a utilities perspective and
owning cost (Equation 1) in the design the power to serve no load losses come from
optimisation process which is used by buyers the base load demand of the system.
for evaluating offers made by different
manufacturers. Thus, the transformer The capitalization value of load losses “B” (in
manufacturers request from the users, the LKR/W or USD/W) is the value of a unit load
capitalization value of no load losses (A) and loss of a distribution transformer throughout
the capitalization value of load losses (B) for its life span. This value varies according to the
use in the design process. By varying a large load pattern, load growth and the behaviour of
number of design parameters, design tools the load profile. The „B‟ value is dependent on
used by the transformer designers select the the annual loss factor, peak responsible factor,
transformer having the lowest TOC for the equivalent annual peak load, and the fixed
optimized design. Therefore, the loss charge rate of the transformer as well as on the
capitalization values play a major role in the cost of capacity and energy required to
transformer designing process. generate, transmit and distribute transformer
losses[2]. The capitalization value of load
In the specification [4], [5] of the substation losses is given by Equation 3 [9].
transformers of the CEB, the cost of
guaranteed losses are indicated. Substation 𝐶𝐶𝑆𝑆𝐶𝐶 ൅𝐶𝐶𝐸𝐸 ൈͺ͹͸Ͳ ͳ
transformers are purchased by the CEB
𝐴𝐴 ൌ  ൈ ......(2)
𝐸𝐸𝑇𝑇ൈ𝑅𝑅𝐹𝐹𝐶𝐶 ൈ𝐼𝐼𝐹𝐹 ͳͲͲͲ
through a competitive bidding process.
Therefore, by including capitalization values
for losses in the CEB specifications, bidders
will be required to follow those values in their ......(3)
transformer designs. Thus, the CEB can select
an optimized transformer by considering TOC
using data provided by the bidders. In general, where,
the lowest TOC value is given by the most CSC – System Capacity Cost
optimized transformer design. (LKR/kW/year)
However, it is not the same in the case of CE – Energy cost (LKR / kW-hour)
distribution transformers because their RFC – Fixed charge rate
capitalization values are not specified during RF – Responsibility Factor

13
3
lf – Loss Factor i.e. transformers installed in rural areas, semi-
PL – Uniform annual Peak Load urban areas and urban areas. The loads
ET – Efficiency of Transmission attached to transformers installed in the three
IF – Increasing Factor areas give rise to three different load profiles.
8760 – Number of hours per year In rural areas, the transformer has a
predominant peak in the evening (18 00 hours
 System Capacity Cost to 22 00 hours) and during the rest of the time
The System Capacity Cost ሺ𝐶𝐶𝑆𝑆𝐶𝐶 ሻ [2] is the a very small load. In urban areas, the peak
levelized annual cost of additional generation, occurs during the day as they serve mostly
transmission and distribution capacity commercial loads. In semi-urban areas, the
necessary to supply 1 kW of peak load to the load curve is in between rural and urban load
distribution transformer. This value reflects profiles (Table 2).
the cost of peak generation, transmission and
distribution capacity. 2.3 Data Collection
Measurements were done on a selected
 Levelized Energy Cost number of distribution transformers installed
The Levelized Energy Cost (𝐶𝐶𝐸𝐸 ) [2] includes a in rural, semi-urban and urban areas using
cost proportional to the energy output of the data loggers and energy meters, which were
generator. This would include the cost of fuel placed at the secondary side of the respective
and the cost of operation, maintenance, and distribution transformers. The average current,
transportation, storage and conversion of fuel average voltage, average power factor, export
to electrical energy. demand and average frequency at fifteen (15)
minute intervals were recorded over a period
 Annual Fixed Charge Rate of 7 days at each of the transformers. Using
The levelized Annual Fixed Charge Rate (RFC) recorded data from five distribution
[2] converts the levelized annual cost of losses transformers, load curves shown in Figure 1,
into a capitalized value. This term is also Figure 2 and Figure 3 were plotted for rural,
referred to as the annual cost ratio. The semi-urban and urban areas respectively.
levelized annual fixed charge rate can be
multiplied by the bid price to convert the cost Table 2 - Distribution Transformer
of the transformer into an annual cost. This Categorization Criteria
Load Profiles
term consists of components like, minimum Category Rural Semi Urban
acceptable return, book depreciation, income Urban
taxes and insurance. Locations Rural Small Commercia
villages towns lised towns

 Efficiency of Transmission
Type of Mainly Household, Mainly
The Efficiency of Transmission (ET) [7] is
loads households commercial commercial
defined as the energy received at the input & industrial & industrial
terminals of the distribution transformer Transformer Night Day time Day time
divided by the energy transmitted from the peak (morning)
occurring & night
source. Normally, this efficiency varies with
time
loading, location, voltage level or season, etc.
The efficiency of transmission becomes 2.4 Calculation of Load Factor and Loss
significantly large in some instances. Factor
With the collected load demand data, a graph
 Increasing Factor was plotted with demand (kW) against
The Increasing factor (IF) [7] represents the duration of the demand values (Hours).
total cost that the user must pay to acquire the Another graph was plotted with square values
transformer. This term includes components of load currents (A2) against the duration of
like purchase price of the transformer, the load currents (Hours). These graphs were
overhead fees and taxes. used to calculate the load factor and the loss
factor of distribution transformers. The load
2.2 Categorization of Distribution factor is considered as a measure of utilization
Transformers of the electricity network. The average load
Distribution transformers behave in different can be calculated by using the value of the area
ways according to their load profiles. under the curve and the duration of the curve
Therefore, in this study distribution (Equation 5 and Equation 6). The peak value of
transformers are categorized into three groups

4
14
the demand curve was found and the load and the peak value from the graph, as shown
factor was calculated using the average load in Equation 7.

35
30

Demand (kW)
25
C056 (160 kVA)
20
15 C051 (100 kVA)

10 U016 (100 kVA)

5 T042 (100 kVA)

0 U044 (100 kVA)

0:00 2:30 5:00 7:30 10:00 12:30 15:00 17:30 20:00 22:30

Duration (Hours)

Figure 1 - Demand Curves for Distribution Transformers in Rural Areas

120
100
Demand (kW)

80 C074 (100 kVA)

60 S081 (160 kVA)
40
S030 (100 kVA)
20
P137 (100 kVA)
0
Q071 (160 kVA)
0:00 2:45 5:30 8:15 11:00 13:45 16:30 19:15 22:00

Duration (Hours)

Figure 2 - Demand Curves for Distribution Transformers in Semi-urban Areas

160
140
120
Demand (kW)

100 F066 (250 kVA)

80 R051 (100 kVA)
60
R039 (400 kVA)
40
F045 (250 kVA)
20
0 F058 (250 kVA)

0:00 2:30 5:00 7:30 10:00 12:30 15:00 17:30 20:00 22:30

Duration (Hours)

Figure 3 - Demand Curves for Distribution Transformers in Urban Areas

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5
 T
E   Pdh  Area under demand curve .....(4)
where,
0
b - Initial transformer load in per unit of the
transformer nameplate rating.
T
1 g - The annual peak load growth of the
T 0
Pav  P(t) dt .....(5)
distribution transformer in per unit
n - Number of years of the transformer life
i - Minimum acceptable return
Average Load The relationship between the Load Factor (LF),
Loss Factor (lf) and the Annual Peak Loading
= [Area under the load curve / Duration] ...(6)
(PL) is given in Equation 11, which is as per
LF = (Average Load/Peak Load) .....(7) the IEEE loss evaluation guide [7].

where LF is the Load Factor (LF2) = (lf) × (PL2) ..... (11)

In the same way, the calculation of the load where,

factor and the loss factor in load profiles of LF - Load Factor
distribution transformers in rural, semi-urban lf - Loss Factor
and urban areas were done. As per Equation 8, PL - Uniform Annual Peak Loading
if the resistance (R) is constant then the power
loss would be directly proportional to the
square value of the load current (A2). A graph  Peak Responsibility Factor (RF)
was plotted with square values of load The peak Responsibility Factor (RF) [2]
currents (A2) against. the duration (Hours). describes the diversity of the load on the
Thereafter, the Loss factor was calculated transformer. It indicates the relationship
using Equation 6 and 7 as shown above. between the transformer peak load and the
transformer load at the peak time of the utility
Power Loss = (I2) × R .....(8) system load. This means that the peak loading
on a distribution transformer does not occur at
where the same time as the peak loading on the
I = Load current (A) various components of the generation,
R = Resistance (Ω) transmission and distribution system.

Distribution planning engineers use Equation RF = Transformer load at system peak ….. (12)
9 to calculate the Loss factor (lf) Transformer peak load

lf = (a × LF) + (b × LF2) .....(9) 3. Determination of

a, b – constant values dependent on loading Capitalization Values
profile while a = 1-b.
3.1 Calculation of the Capitalization
In the CEB, planning engineers use 0.2 and 0.8 Value of No Load Loss
for „a‟ and „b‟ respectively. Then the Equation 9 Calculation of Fixed Charge Rate
becomes: The Fixed Charge Rate (RFC) is given by the
combination of following components.
lf = (0.2 × LF) + (0.8 × LF2) .....(9)  Minimum Acceptable Return =12.75%
This term represents opportunity cost.
 Uniform Annual Peak Load  Book Depreciation = 2.86%
The term uniform annual Peak Load (PL) [2] is
given to the levelized peak load per year over Distribution transformers are taken as fixed
the life of the transformer. It is dependent on assets in the accounting practices of the CEB.
the initial peak load, the estimated load Hence, for book depreciation a value of 1/35 is
growth rate and the maximum allowable load given as a percentage by using the straight-line
of the transformer. method.
 Income taxes = 0%
𝑛𝑛 ͳ 𝑗𝑗 −ͳ ʹ This term is not relevant to semi-
𝑃𝑃𝐿𝐿 ൌ  𝑗𝑗 ൌͳ 𝑏𝑏 ͳ ൅ 𝑔𝑔 ∗ ......(10) government organizations like the CEB.
ͳȀʹ
ͳ 𝑖𝑖 ͳ൅𝑖𝑖 𝑛𝑛 ͳ Hence income taxes are taken as zero.
 ∗
ͳ൅𝑖𝑖 𝑛𝑛 ͳ ͳ൅𝑖𝑖 𝑛𝑛 ͳ −ͳ  Local Property taxes and insurance = 0.1%

6
16
There was no local property tax value for CEB
properties. However, the CEB takes 0.1% as CE = {Σ [Ck / (1+i)k] } * CRF ..... (14)
their self-insurance reserves [3], [8]. Therefore,
the fixed charge rate is as given below: where Ck is the electricity price in the kth year
and;
Fixed Charge Rate = (12.75 + 2.86 + 0 + 0.1) %
= 15.71 % CRF = [i * ((1+i) n)] .....(15)
[((1+i) n) - 1]
Efficiency of Transmission (ET)
The CEB‟s overall system loss in the year 2013 = [0.1042 * ((1+0.1042) 35)]
was 10.79 % [1]. Based on the IEEE loss [((1+0.1042) 35) - 1]
evaluation guide [7], the Efficiency of the
Transmission (ET) was calculated as follows. = 0.1075

ET = (100% – overall losses%) Σ [Ck / (1+i)k] = 255.27 LKR/kWh

= (100 – 10.79)%
= 89.21% Thus, the levelized annual cost of energy (CE)
is given by Equation (14) as;
Increasing Factor (IF)
The CEB considers overhead cost together CE = 255.27×0.1075 LKR/kWh
with labour charges. Sales taxes are also not
applicable to the CEB. Therefore, components = 27.45 LKR / kWh
like overhead cost, sales taxes and consultancy
fees are not taken for the calculation of the Therefore, the capitalization value of no load
Increasing Factor (IF). The purchase price is losses can be determined using Equation (2)
the only component considered. Hence, the and the above calculated data can be
increasing factor is taken as 1.00 for the summarized as given below.
calculation.
CSC = 24,000 LKR / kW / year
IF = (purchase price + overhead + taxes) ....(13) CE = 27.45 LKR / kWh
purchase price RFC = 0.1571
ET = 0.8921
= (purchase price + 0 + 0) IF = 1.00
(purchase price)
A [
24000
= 0.8921
+ 27
24000  .45x8760
27.45
x0.1571
0.8921 0.1571x11
]
8760
x
1000
1

= 1.00 = 1887 LKR / W

System Capacity Cost (CSC) The exchange rate considered was 1 US$ to 130
The system capacity cost (CSC) for each month Sri Lankan Rupees. Then, the capitalization
in the year 2013 was taken as 24,000.00 LKR / value of no load loss (A) in a distribution
kW /year [9]. transformer can be taken as 1900 LKR / W or
14.52 US$ / W.
Energy Cost (CE)
The average energy cost (CE) for the year 2013 3.2 Calculation of the Capitalization
is taken as 12.69 LKR / kWh [11]. Since the Value of Load Loss
average energy cost has escalated over the The capitalization value of load loss (B) can be
lifetime of the distribution transformer, the calculated using Equation (3) once all
present worth of the energy cost was taken parameters in this equation have been
and levelized over the life span of the determined. Values for system capacity cost
distribution transformer. The inflation (a) and (CSC), levelized energy cost (CE), fixed charge
the discount rate (i) were taken as 6.425 % [10] rate (RFC), Efficiency of Transmission (ET) and
and 10.42% [12] respectively. The life time of a Increasing Factor (IF) have been already
distribution transformer (n) was taken as 35 calculated in Section 3.1 in calculating the
years. The Capital Recovery Factor (CRF) [7] capitalization value of no load losses.
was used to compute the levelized cost However, terms like Responsibility Factor
throughout the life span of the distribution (RF), loss factor (lf) and uniform annual peak
transformer (35 years). load (PL) have to be calculated. These
parameters are sensitive to the load profiles of

17
7
distribution transformers. Therefore, these Table 3 - Calculated Load Factors for
parameters are calculated for different load Distribution Transformers in Rural Areas
profiles of distribution transformers installed
Name of Sub Station Load
in rural, semi-urban and urban areas.
Factor
Mapalana (C056) 46 %
Calculation of the Loss Factor, Uniform
Annual Peak Loading and Responsibility
Factor Deiyannegama (C051) 51 %
The Loss Factor (lf) is calculated in terms of
Load Factor (LF). Normally, the load factor is Udahagoda (U016) 55 %
considered as a measure of the utilization of
the electricity network. So, the load factor and
Dombagaswinna (T042) 48 %
the loss factor are calculated according to the
methodology mentioned above. The uniform
annual peak loading and peak responsibility Wijeriya (U044) 41 %
factor are also calculated according to this
methodology. Average 48 %

Sample Calculation for Distribution

Transformers in Rural Areas Normally, the peak responsible factor indicates
The calculation of the load factor (LF) and the the relationship between the transformer peak
peak Responsible Factor (RF) are made using load and the transformer load at the time of
measurements made on several distribution the utility system peak load. When using data
transformers in rural areas. Transformers in measured from Mapalana distribution
rural areas were selected according to norms transformer – C056 (160 kVA), Equation 9 and
mentioned above. A sample calculation was Equation 12 become,
done using data recorded from Mapalana
distribution transformer – C056 (160 kVA). lf = (0.2 × LF) + (0.8 × LF2)
= (0.2 × 0.48) + (0.8 × 0.482)
= 0.28
Average Load = Area under the Load curve
24x7 RF =Transformer load at system peak load
Transformer peak load
= [2254.37 / (24x7)] = 26.8 MW
= 13.42 kW 29.32 MW
= 0.91
Peak Load = 29.32 kW
Peak Responsibility Factors (RFs) calculated
Load Factor = (Average Load / Peak Load)
for other distribution transformers in rural
= (13.42 / 29.32)%
areas are shown in Table 4.
= 46 %
Table 4 - Calculated Values of the Peak
Similarly, load factors were calculated for the
Responsibility Factor of Distribution
rest of the distribution transformers installed
Transformers in Rural Areas.
in rural areas. The calculated values of the load
factor for each distribution transformer are Name of Sub Station RF
shown in Table 3.
Mapalana (C056) 0.91
Thereafter, by taking the average of the Load Deiyannegama (C051) 0.89
Factors in the above mentioned distribution
transformers, the Load Factor for distribution Udahagoda (U016) 0.91
transformers in rural areas were taken as 48%.
The peak responsibility factor (RF) is another Dombagaswinna (T042) 0.90
important term in the capitalization value
equation (Equation 3). Average 0.90

Therefore, peak responsibility factor (RF) of

distribution transformers in rural areas has
been considered as 0.90 in this study.

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18
The calculation of the uniform annual peak Lanka based on whether they are installed in
loading (PL) is done by using Equation 11. rural, semi-urban or urban areas of Sri Lanka
together with their initial purchase prices for
(LF2) = (lf) × (PL2) comparison. The no-load loss and load loss
where, values of transformers presently used by the
LF - Load Factor CEB as summarized in Table 1 were used for
lf - Loss Factor this calculation.
PL - Uniform Annual Peak Loading
The results clearly show that customers should
According to the results calculated above, for not get misled by the attractive low initial
distribution transformers in rural areas, prices of transformers but that they need to be
Load factor (LF) = 0.48 guided by the Total Owning Cost (TOC)
Loss factor (lf) = 0.28 taking life time costs due to transformer losses
into consideration. They should also be
Thus from Equation 11 concerned of the type of the load profile
(PL) = [(LF2) / (lf)] 0.5 applicable to the transformer they purchase, as
= 0.91 indicated in this study from the load profiles
of transformers installed in rural, semi-urban
Now using all the calculated parameters in and urban areas of Sri Lanka.
Equation 3.
Table 5 - Calculated Capitalization Values for
Distribution Transformers

Profile A (US$/W) B(US$/W)

B =  24000 0.9 0.9  27.45  8760 0.28   0.91 * 0.91 Rural Areas 14.5 3.92
 
 0.89  0.1571  11000 
Semi-urban Areas 14.52 5.69
B = 509.4 LKR/W
Urban Areas 14.52 6.79
Considering an exchange rate of 1 US$ to 130
Sri Lankan rupees, the capitalization value of References
load losses in distribution transformers (B) in
rural areas is calculated as 3.92 US$ / W.
1. Ceylon Electricity Board, Statistical Unit,
“Statistical Digest, 2013”
Following a procedure similar to what was
described above, the capitalization value of 2. B. W. Kennedy, Energy Efficient
load losses (B) in distribution transformers for Transformers,1998, McGraw Hill Companies,
Inc, United States of America
semi-urban areas is calculated to be 750
LKR/W or 5.69 US$/W and the capitalization 3. Ceylon Electricity Board, “Annual Report,
value of load losses in distribution 2012”
transformers (B) for urban areas is calculated 4. CEB Specification, 108-1:2014_5 MVA 33
to be 900 LKR/W or 6.79 US$/W. The kV\11 kV Power Transformer with on load
calculated values for loss capitalisation values Tap Changer.
for rural, semi-urban and urban areas of Sri
5. CEB standard, 108-1:2014_5 MVA 33 kV\11 kV
Lanka are summarized in Table 5 below. Power Transformer with on load Tap Changer.
4. Conclusion and 6. CEB Specification, 98_2000_Medium Voltage
Recommendations Distribution Transformers.
7. Loss evaluation guide, IEEE C57.120-1991.
Based on the results summarized in Table 5
above, TOC can be calculated for any 8. Ceylon Electricity Board, “Annual Report,
transformer if the no-load loss and full load 2011”
loss and the initial purchase price are known. 9. Bulk Supply Tariff Forecast based on Tariff
Methodology, 2011, Deputy General
Table 6 shows the Total Owning Cost (TOC) Manager (Energy Marketing Branch)
for four capacities of typical 33kV/400V 3- 10. Central Bank of Sri Lanka web site,
phase distribution transformers used in Sri www.cbsl.gov.lk

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Table 6 - Comparison of Total Owning Cost (TOC) with the initial Purchase Prices of Distribution
Transformers
Capacity No-load Load Loss Purchase TOC when Installed in Sri Lanka (LKR)
kVA Loss (W) (W) Price (LKR)
Rural Area Semi Urban Urban Area
Area
A= 1887.6 LKR/W

B = 509.6 B = 739.7 B = 882.7

LKR/W LKR/W LKR/W
100 340 1900 545,700.00 2,155,724.00 2,592,914.00 2,864,614.00

160 460 2450 668,600.00 2,785,416.00 3,349,161.00 3,699,511.00

250 610 3150 823,200.00 3,579,876.00 4,304,691.00 4,755,141.00

400 870 4000 1,189,100.00 4,869,712.00 5,790,112.00 6,362,112.00

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