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1 The Ramifications of the New Transformer Efficiency Standards from DOE IEEE REPC Meeting Charleston, SC 4/29/08 Alan L. Wilks Chief Technical Officer

1 The Ramifications of the New Transformer Efficiency Standards from DOE IEEE REPC Meeting Charleston, SC 4/29/08 Alan L. Wilks Chief Technical Officer

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Page 1: 1 The Ramifications of the New Transformer Efficiency Standards from DOE IEEE REPC Meeting Charleston, SC 4/29/08 Alan L. Wilks Chief Technical Officer

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The Ramifications of the New Transformer Efficiency Standards

from DOE

IEEE REPC MeetingCharleston, SC

4/29/08

Alan L. WilksChief Technical Officer

Page 2: 1 The Ramifications of the New Transformer Efficiency Standards from DOE IEEE REPC Meeting Charleston, SC 4/29/08 Alan L. Wilks Chief Technical Officer

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Discussion Outline

1. How the DOE Rule Impacts: Cost Delivery Size Loss Formulas Testing Future Changes

2. Example Calculations

Page 3: 1 The Ramifications of the New Transformer Efficiency Standards from DOE IEEE REPC Meeting Charleston, SC 4/29/08 Alan L. Wilks Chief Technical Officer

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Impact on Cost

Major factors on Cost Raw Material Cost

Core Steel – UP (DOE uses more, all high quality)Copper – UP (DOE uses more)Aluminum – UP (DOE uses more)Oil – UP (DOE uses about same or less)

Page 4: 1 The Ramifications of the New Transformer Efficiency Standards from DOE IEEE REPC Meeting Charleston, SC 4/29/08 Alan L. Wilks Chief Technical Officer

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Raw Material Cost History

Raw Material Cost

1.0

1.5

2.0

2.5

Apr-04 Apr-05 Apr-06 Apr-07 Apr-08

Co

st M

ult

iplie

r

Oil

CU

Core Stl

AL

Page 5: 1 The Ramifications of the New Transformer Efficiency Standards from DOE IEEE REPC Meeting Charleston, SC 4/29/08 Alan L. Wilks Chief Technical Officer

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Impact on Cost

Availability of Raw Materials Core Steel – Limited Supply (High Quality)

Major factors on Cost (Cont.)

Page 6: 1 The Ramifications of the New Transformer Efficiency Standards from DOE IEEE REPC Meeting Charleston, SC 4/29/08 Alan L. Wilks Chief Technical Officer

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Availability of Raw Material – Core Steel

XX

XXX

X – High quality (M3 or better) steel producers

Page 7: 1 The Ramifications of the New Transformer Efficiency Standards from DOE IEEE REPC Meeting Charleston, SC 4/29/08 Alan L. Wilks Chief Technical Officer

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Continued high demand in China Domestic steel vendors plans:

Modest production increases by 2010 No plans on adding significant capacity

Takes 3 years after deciding

Availability of Raw Material – Core Steel

World shortage of high quality core steel

Page 8: 1 The Ramifications of the New Transformer Efficiency Standards from DOE IEEE REPC Meeting Charleston, SC 4/29/08 Alan L. Wilks Chief Technical Officer

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Core Steel Consumption

Consumption based on 2007 usage, an average production year.

2007 Actual 2007 Converted toDOE

Transformer Plant@ Full Capacity

M6

M2

M3

Allotment

Page 9: 1 The Ramifications of the New Transformer Efficiency Standards from DOE IEEE REPC Meeting Charleston, SC 4/29/08 Alan L. Wilks Chief Technical Officer

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Impact on Cost

Major factors on Cost (Cont.)

Production CapacityHigher efficiency transformers require:

Larger cores More winding turns

Results in more manufacturing time, slightly limiting production capacity

Page 10: 1 The Ramifications of the New Transformer Efficiency Standards from DOE IEEE REPC Meeting Charleston, SC 4/29/08 Alan L. Wilks Chief Technical Officer

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Overall Impact on Cost

DOE estimated an increase in first cost of 6-12% Based on 2006 material costs and no escalation

This estimate was a generalization and too low Impact on cost depends upon individual utility

purchasing techniques Difficult to predict costs next month, let alone

2010 Best way to determine cost impact is to get

quotes on DOE and non-DOE transformers

Page 11: 1 The Ramifications of the New Transformer Efficiency Standards from DOE IEEE REPC Meeting Charleston, SC 4/29/08 Alan L. Wilks Chief Technical Officer

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Impact on Delivery

Delivery will be impacted as materials are in short supply

Steel vendors will continue to have manufacturers on allocation

Core steel rationing may cause transformer production to be limited

ERMCO will support long-standing customers as first priority

Page 12: 1 The Ramifications of the New Transformer Efficiency Standards from DOE IEEE REPC Meeting Charleston, SC 4/29/08 Alan L. Wilks Chief Technical Officer

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Impact on Delivery

Storm emergency transformers will be greatly impacted

Options will be:Build storm restoration units and delay othersUtilities carry more inventoryDistributors carry more inventoryPetition DOE for a temporary waiver for storm

units

Page 13: 1 The Ramifications of the New Transformer Efficiency Standards from DOE IEEE REPC Meeting Charleston, SC 4/29/08 Alan L. Wilks Chief Technical Officer

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Impact on Size (1Ø)

DIM.kVA Eval. Wt. Gal. Dia. x Ht.

15 Pole Non Eval 247 10 13 x 24$3/$1 262 9 13 x 24DOE 274 9 13 x 24

25 Pole Non Eval 358 18 15 x 30$3/$1 363 13 15 x 26DOE 401 13 15 x 26

Width x Depth

25 Pad Non Eval 533 25 32 x 28 $3/$1 553 24 32 x 28 DOE 601 26 32 x 29

50 Pad Non Eval 711 32 32 x 31$3/$1 710 28 32 x 31DOE 757 30 32 x 34

+27#, =Size

+43#, -4”H

+68#, +1”D

+46#, +4”D

Change

Page 14: 1 The Ramifications of the New Transformer Efficiency Standards from DOE IEEE REPC Meeting Charleston, SC 4/29/08 Alan L. Wilks Chief Technical Officer

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Impact on Size (3Ø)

DIM.kVA Eval. Wt. Gal. Width x Depth

500 Non Eval 5,202 260 60 x 45$3/$1 4,967 180 56 x 45DOE 4,824 207 56 x 45

1500 Non Eval 9,979 430 66 x 55$3/$1 9,942 418 66 x 55DOE 9,864 417 66 x 55

2500 Non Eval 13,423 580 72 x 59$3/$1 13,956 496 72 x 59DOE 13,588 527 72 x 59

-378#, -4”W

-115#, =Size

+165#, =Size

Change

Page 15: 1 The Ramifications of the New Transformer Efficiency Standards from DOE IEEE REPC Meeting Charleston, SC 4/29/08 Alan L. Wilks Chief Technical Officer

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Impact on Loss Formula

Non-Compliant

Compliant

98.91%

Page 16: 1 The Ramifications of the New Transformer Efficiency Standards from DOE IEEE REPC Meeting Charleston, SC 4/29/08 Alan L. Wilks Chief Technical Officer

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Impact on Loss Formula

Generally Speaking – Loss formulas of $4.50/$1.00 for 1Ø and

$3.00/$1.00 for 3Ø usually meet DOEHigher formulas will result in more efficient

units than DOELower formulas will have no effect on

efficiency, but may shade the loss ratio in one direction or another to minimize TOC

No formula will result in lowest cost without regard for TOC

Page 17: 1 The Ramifications of the New Transformer Efficiency Standards from DOE IEEE REPC Meeting Charleston, SC 4/29/08 Alan L. Wilks Chief Technical Officer

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Impact on Loss Formula

Since formulas reflect the Total Owning CostContinue to use a formula if believed to be

accurate.Using a formula will result in:

An optimum ratio of core to winding lossA most cost effective design based on TOC

Not using a formula will result in:A DOE design at minimum cost.

Page 18: 1 The Ramifications of the New Transformer Efficiency Standards from DOE IEEE REPC Meeting Charleston, SC 4/29/08 Alan L. Wilks Chief Technical Officer

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Impact on Testing

Manufacturers must verify compliance by:100% testing, orAlternative Efficiency Determination Method

(AEDM) sampling plan Enforcement is by the Honor System

Manufacturers must report lowest efficiency models to DOE

Violators will be found by whistleblowersDOE may seek civil penalties for non-

compliance

Page 19: 1 The Ramifications of the New Transformer Efficiency Standards from DOE IEEE REPC Meeting Charleston, SC 4/29/08 Alan L. Wilks Chief Technical Officer

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Tolerances

The stated DOE efficiency levels are minimum averages for a modelA model is defined by electrical characteristics

However, DOE allows a toleranceThe average efficiency of the sample X must be:

Avg.Eff.(X) ≥ 100 / (1+(1+0.08/SQRT(n))*(100/RE-1))

Where: n = number of units in sample RE = represented efficiency (DOE’s specified value)

Page 20: 1 The Ramifications of the New Transformer Efficiency Standards from DOE IEEE REPC Meeting Charleston, SC 4/29/08 Alan L. Wilks Chief Technical Officer

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Example Tolerance (25 kVA)

Avg.Eff.(X) ≥ 100 / (1+(1+0.08/SQRT(n))*(100/RE-1))

RE = 98.91% Efficiency

For: n Avg.Eff.≥

1 98.824

10 98.883

100 98.901

1000 98.907

25 kVA Tolerance

98.80

98.82

98.84

98.86

98.88

98.90

98.92

1 10 100 1000

X Units Tested

Eff

icie

ncy

DOE EFF (RE) MIN AVG EFF (X Units) ABS MIN (1 Unit)

DOE Specified (RE)

Minimum Average (X Units)

Absolute Minimum (1 Unit)

Page 21: 1 The Ramifications of the New Transformer Efficiency Standards from DOE IEEE REPC Meeting Charleston, SC 4/29/08 Alan L. Wilks Chief Technical Officer

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Future Changes ?

Lawsuits may affect future efficiency levelsEarthjustice has filed suit on behalf of:

Sierra ClubNational Resources Defense Council (NRDC)

California Attorney General’s office has filed a similar suit

Both suits claim the standards are too weak and will lead to excessive energy consumption and unnecessary global warming pollution

Page 22: 1 The Ramifications of the New Transformer Efficiency Standards from DOE IEEE REPC Meeting Charleston, SC 4/29/08 Alan L. Wilks Chief Technical Officer

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Future Changes ?

Page 23: 1 The Ramifications of the New Transformer Efficiency Standards from DOE IEEE REPC Meeting Charleston, SC 4/29/08 Alan L. Wilks Chief Technical Officer

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Future Changes ?

Fast track temporary waiver of DOE efficiency requirement in the event of storm emergencies.

Page 24: 1 The Ramifications of the New Transformer Efficiency Standards from DOE IEEE REPC Meeting Charleston, SC 4/29/08 Alan L. Wilks Chief Technical Officer

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Supplemental Information

Example Calculations

Page 25: 1 The Ramifications of the New Transformer Efficiency Standards from DOE IEEE REPC Meeting Charleston, SC 4/29/08 Alan L. Wilks Chief Technical Officer

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Example Calculations

Efficiency = Output / InputkVA*1000 / (kVA*1000 + Losses)

DOE BasisNo Load Losses @ 20°CLoad Losses @ 55°C (exc. auxiliary losses)50% load

Eff = kVA*1000*0.5 / [kVA*1000*0.5 + NL20°C + LL55°C*(0.5)2]

Page 26: 1 The Ramifications of the New Transformer Efficiency Standards from DOE IEEE REPC Meeting Charleston, SC 4/29/08 Alan L. Wilks Chief Technical Officer

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Example Calculations (cont.)

Temperature Corrections No Load

If quoted at 85°C, then

NL20°C = NL85°C * TCF where TCF =

1.04225 = 1 + 0.00065 * (85° - 20°)

No LoadIf quoted at 85°C, then

LL55°C = LL85°C * TCFwhere TCF =

0.9032 for AL/AL (225+55)/(225+85)0.9045 for CU/AL (229+55)/(229+85)0.9061 for CU/CU(234.5+55)/(234.5+85)

Page 27: 1 The Ramifications of the New Transformer Efficiency Standards from DOE IEEE REPC Meeting Charleston, SC 4/29/08 Alan L. Wilks Chief Technical Officer

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25 kVA Example

Losses: NL20°C = 60 watts

LL85°C = 334 watts (CU/AL)

Efficiency Calculations:

LL55°C = 334 * 0.9045 = 302.1

Eff = 25,000*0.5/(25,000*0.5 + 60 +

302.1*0.52)

Eff = 98.93%

DOE Rule = 98.91%, therefore this unit meets DOE

Page 28: 1 The Ramifications of the New Transformer Efficiency Standards from DOE IEEE REPC Meeting Charleston, SC 4/29/08 Alan L. Wilks Chief Technical Officer

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ERMCO Contact Information

Alan Wilks – ERMCO

[email protected]

(800) 238-5587

(731) 285-9121