“energy efficiency and profitability analysis of reduced loss transformers: experiences in...

“ENERGY EFFICIENCY AND PROFITABILITY ANALYSIS OF REDUCED LOSS

TRANSFORMERS: Experiences in Spain"

14th May 2003J.Frau Spain Session 5 – Block 1.2

Barcelona 12-15 May 2003

J.Frau Spain Session 5 – Block 1.2

Contents

1. Introduction

2. Loss saving potential in MV/LV transformers

3. Regulation: Incentives or Dis-Incentives?

-Spanish market-

4. A-TOC methodology ENDESA: Profitability analysis

5. EFFITRAFO: Endesa’s analysis tool

6. CONCLUSIONS



1.- INTRODUCTION (I)

2% of PGEN Losses in Distribution Transformers

Dispersed massive effect + 60 Mtransformers/world

+ 18 nuclear PS/world

Spainlosses > 2500 GWh/year in MV/LV transformers

> 95 M€/year

• > 50 TWh EU

• > 60 TWh USA



ENDESA DISTRIBUCIÓN - 2001

1.- INTRODUCTION (II)

Rated power (kVA)

CATALONIA SOUTH ARAGÓNCANARY ISLANDS

BALEARIC ISLANDS

TOTAL units

50 5.327 6.844 1.641 347 2.454 16.613100 3.570 4.505 613 728 1.506 10.922160 2.949 3.110 897 1.030 621 8.607250 4.815 4.689 973 1.143 1.959 13.579400 6.930 6.750 1.426 1.529 2.192 18.827630 7.046 7.036 1.290 1.847 602 17.821

1.000 3.993 584 30 186 0 4.793TOTAL 34.630 33.518 6.870 6.810 9.334 91.162

MV/LV TRANSFORMER INVENTORY

With VIESGO 972 GWh

Without VIESGO 911 GWh

TOTAL MV/LV transformer losses



Voltage GWh GWh %

H.V. 14,684 2,076 2.20 H.V.Network

1,510 1.60 M.V.Network

972 1.03 Trans. centers

1,463 1.55 L.V.Network

1,048 1.11 Non-technical Losses

TOTAL 87,307 7,077 7.49

Power Supplied

ENERGY BALANCE - ENDESA ESPAÑA 2001

27,072

45,551

Losses

M.V.

L.V.

1.- INTRODUCTION (III)



LOSSES IN MV/LV Transformers

Distribution Area

Power Supplied (GWh)

Total Losses TT.CC. (GWh)

No-load losses (GWh)

Load Losses (GWh)

SOUTH 15.614 301 238 63

ARAGON 2.597 62 46 16

BALEARIC ISLANDS

3.072 78 54 24

CATALONIA 18.366 402 292 110

CANARY ISLANDS

3.800 68 57 11

ENDESA SPAIN* 43.913 911 687 224

100% 75% 25%

LOSSES IN MV/LV Transformers

ENDESA SPAIN 2001*

*Discounting Viesgo



2.- LOSS SAVING POTENTIAL in MV/LV TRANSFORMERS

Loss saving potential for “inventory”

P 0 (GWh) Pvar (GWh) C' (GWh) C (GWh) Actual (GWh) C-C' (GWh)

SOUTH 238 63 167 81 301 248 53 ERZ 46 16 31 18 62 49 13

BALEARICS 54 24 27 12 78 39 39 CATALONIA 292 110 136 46 402 182 220 CANARY ISLANDS 57 11 33 8 68 41 27

ENDESA ESPAÑA (*) 687 224 394 165 911 559 352

39%

LOSS SAVING POTENTIAL for inventory (January, 2002) Total Losses Saving

potential (GWh)

Territory Efficient transformers Current transformers

(*)VIESGO, sold to ENEL in January, 2001, was excluded.

Standard levels of losses HD 428

STANDARD LOSSES IN DISTRIBUTION TRANSFORMERS (Europe 428 –Oil-filled up to 24 kV)

Load Pvar (W) No-load Po (W)

A (W)

B (W)

C (W)

A’ (W)

B’ (W)

C’ (W)

50100160250400630

100016002500

110017502350325046006500

105001700026500

1350215031004200600084002000

2000032000

875147520002750385054009500

1400022000

190320460650930

1300170026003800

145260375530750

1030140022003200

125210300425610860

110017002500

Rated

power

kVA

* D-D’ transformer = hypothetical unit reduced

by 15% respect to C-C’.

Reference of efficiency: C-C’

Loss saving for 1 year (new incorporations)

C' C A' A

50 263 736 690 690.040 1.095 471 1.664 592

100 192 614 1.112 896.358 1.840 794 2.803 942

160 121 73 1.590 307.806 2.628 1.076 4.030 1.264

250 143 143 2.240 640.643 3.723 1.480 5.694 1.749

400 219 635 3.207 2.738.855 5.344 2.071 8.147 2.475

630 265 133 4.446 1.767.373 7.534 2.905 11.388 3.497

1000 30 0 5.794 173.821 9.636 5.111 14.892 5.649

TOTAL 1.233 2.334 7.214.897

3.567

45.707 64.786

Saving (KWh) Direct Purchase Units

New Customers

Contribution Units

Potential Saving For New Incorporations Endesa España (1 year)

Rating (kVA)

Unit Saving (kWh)

Efficient transformers Actual transformers

1 year potential saving ~

7 GWhHypothesis 2001:

Load factor = 42%

hequi. losses = 3050

ENDESA



3.- REGULATION:Incentives or Dis-Incentives ?

Challenge

- CLIMATE CHANGE

EU Governments committed to reducing CO2 emissions (Kyoto)

22% of the demand for electrical energy (EU) RENEWABLES

Target for reducing CO2 in Transport ?

Target for reducing CO2 in T & D ?

Deregulation trends

Lower investment cost approach (short-term thinking)

Life expansion of existing assets



SPANISH MARKET CASE (I)

“Pool” system OMEL (marginal schedule price)

Contribution of different MARKETS:

Average

final price = Dayly

+ Intra-day

+ Operation

+Power

guarantee

+Other

= 3,859 c€/kWh (2001)

3,158

-0,008 0,2500,459

-0,001

~ 81% ~

13%~ 6%



SPANISH MARKET CASE (II)

Price sensitivity analysis 1999-2003

Dayly Market Price evolution (cent €/kWh)(> 80% of final price)

HIGH anual deviations !

Monthly average price

0

1

2

3

4

5

6

7

January February March April May June July August September October November December

cEu

ro/K

Wh

1999 2000 2001 2002 2003

YearWeighted Average

price

Increase (%)

1998 2,580 ---

1999 2,671 3,5%

2000 3,149 17,9%

2001 3,134 -0,5%

2002 3,869 23,5%

2003 (*) 2,432 ?

(*) Until March.



CONCLUSIONS FROM THE SPANISH MARKET

High sensitivity of the TRUE COST of losses = f (market)

No correlation between cost of losses and incentives

Benefits of loss reduction are transferred to the

customers:•UK : 10 years

•ENDESA Spain : 8 years

NPV = -Investment + Σ 8

n=1

Saving(1+i)

n

years

10

0

50

0

% revenuefrom loss reduction



4.- Adapted TOC methodology ENDESA (I)

IEEETOC = Ci + A.Po + B.PC

A: Cost per rated W of no-load losses

B: Cost per rated W of load losses

Ci: Initial capital cost (purchase) of the transformer

ENDESA TOCadapt = Ci + R .A.Po. KTD + R .B.PC. KTD

R = =

KTD: Parameter for losses upstream (T & D networks)

NENDESA + NCOSTUMERSNENDES

A

NTOTAL

NENDES

A

R.D. 1955/2000



Ratio R - example

NEW INCORPORATIONS – year 2002

50 263 736 3.8

100 192 614 4.2

160 121 73 1.6

250 143 143 2

400 219 635 3.9

630 265 133 1.5

1000 30 0 1

TOTAL 1.233 2.334

3.567

Direct Purchase Units

New Customers

Contribution Units

Ratio R Rating (kVA)

NENDES

A

NTOTALR = = f (market, distribution area)

R Indirect INCENTIVE for Utilities

Distribution

area “X”

MV/LV TRANSFORMERS - ENDESA



CALCULATION of A and B parameters (I)

A Unit owning cost for NO-LOAD losses

8.760 hours connected

Average energy price over 1 year (3,859 cent€/kWh in 2001)

B Unit owning cost for LOAD losses

Price = f (moment in which the loss was produced)

Average weighted price = Load curve2 x schedule price (4,256 cent€/kWh in 2001)

CONCLUSIONEfficient transformers are more profitable if the peak load of

the transformer is produced when there is a high energy price

in the NATIONAL market.



CALCULATION of A and B parameters (II)

Results 2001

A = 114.883 cent €/W

B = 5.402 cent €/W

Sensitivity analysis

Energy price

Number of years for loss flow (regulation)

Degree of saturation of transformer

Upgrading rate

Growth in demand



RESULTS

Maximum acceptable extracost for efficient C-C’ transformers with respect to the best A-A’ offer

TransformerAcceptable extra cost

C-C' versus A-A'

50 kVA X %

100 kVA Y %

160 kVA Z %

250 kVA V %

400 kVA W %

630 kVA R %

1000 kVA S %

PURCHASE OF NEW MV/LVTRANSFORMERS -Advisable supplies

- CONFIDENTIAL -

For everydistribution zone

of ENDESA and kind of

market - RURAL - URBAN - INDUSTRIAL - TURISTIC



ENERGY SAVINGS

EMISSION SAVINGS

PROFITABILITY ANALYSIS

EFFITRAFO



6.- CONCLUSIONS

Efficient transformers NOT justified with actual spanish

regulation (in general)

Wrong signal to invest in efficiency when removing or sharing

benefits in less than 15 years

Small incentive in Spain thanks to R parameter (R.D. 1955/2000)

Uncertainty of profitability analysis due to high sensitivity of

involved parameters (years, price curve,...) = (regulation,

market,...)

Asymmetrical treatment “RENEWABLES versus EFFICIENCY”

(only domestic appliances) under-estimation of losses reduction

Need of special incentives to promote efficient transformers

“energy efficiency and profitability analysis of reduced loss transformers: experiences in...

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