EU Efficiency Regulation

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1 Panel Discussion on Transformers EU Efficiency Regulation Panelist Mahesh Sampat Angelo Baggini Kai Pollari Berlin, Germany May 10, 2016

2 Manufacturers Response / Impact Mr. Kai Pollari

3 Transformer Efficiency Responsibility and challenge given to the industry Responsibility European transformer industry and the market have been given a challenge to contribute in improving sustainability Is also about maintaining europe s technology leadership position in the global transformer industry arena and to drive innovation Challenges Transformer energy performance is no longer solely based on the agreement between manufacturer and customer MEPS has zero tolerance risk position! More focus on engineering, technology and innovation Availability of high quality and consistent materials is crucial ABB May 16, 2016 Slide 3

4 Transformer Efficiency Basic methods to reduce losses / simplified Ways to Reduce NL Losses Use better grade of core material Use thinner core steel laminations Use more turns in the coil Use a core with larger leg area Ways to Reduce Load Losses Use copper rather than aluminum (DTR) Use a conductor with a larger area Use fewer turns in the coil Use special means and materials in order to reduce eddy losses Improvement in performance and overall economy requires in most cases a transformer with higher first cost and with possibly a larger footprint and heavier weight Transformer designers can alter the design to provide a solution with reduced no-load or load losses or both MEPS sets a minimum floor value to be met - for further optimization (Total Cost of Ownership), a trade off is required between high efficiency (higher initial cost) and life cycle cost savings (loss evaluation) when improving transformer efficiency ABB May 16, 2016 Slide 4

5 Transformer Energy Efficiency ABB Transformers Energy Efficiency Message Virtually all the generated electrical energy has to go through several transformers before it can be used ABB welcomes Minimum Efficiency Performance Standards (MEPS) as a policy to prevent transformers with lower efficiencies from entering onto the network ABB promotes the use of the Total Cost of Ownership (TCO) methodology ABB is fully ready today to supply transformers with higher efficiency performance than MEPS requires ABB, as the market leader in the industry, and as a socially responsible company, actively participates in the global standardization committees and other collaboration in order to drive sustainable technological solutions and alternatives forward ABB Group May 27, 2015 Slide 3

6 Future Gains Technology

7 Manufacturer Selling Price ($) Future Gains - Technology Lower Technology Curve Manufacturer Selling Price ($) M6AlAl_sh M6CuAl_sh M4AlAl_sh M4CuAl_sh M3CuAl_sh M3CuCu_sh M2CuAl_sh M2CuCu_sh ZDMHCuCu_sh SA1CuCu_co Engineering analysis design database for DL2, 25kVA single-phase Engineering liquid-immersed analysis design database for DL2, 25kVA single-phase Q Material Prices Q Material Prices M6AlAl_sh M6CuAl_sh M4AlAl_sh M4CuAl_sh M3CuAl_sh M3CuCu_sh M2CuAl_sh M2CuCu_sh ZDMHCuCu_sh SA1CuCu_co Advances in newer core material GOSS with yet lower losses Amorphous material with higher operating flux density Advances in thinner insulating material at % 98.00% 98.20% 98.40% 98.60% 98.80% 97.80% 99.00% 98.00% 98.20% 98.40% 98.60% 98.80% 99.00% 99.20% 99.40% 99.60% 99.20% 99.40% 99.60% Transformer Efficiency at 50% Load Transformer Efficiency 50% Load Advances in production equipment and manufacturing methods that allows for tighter (closer) coupling of core & coils. Key to future gains Materials, Equipment & Processes

8 Summary Most major economies have established MEPS for distribution transformers. EU has gone further and have MEPS for Power (Large) transformers. Many have amended initial ruling (2016 DOE) or are in process of setting even higher levels in future (2018 EU). Many developing countries are taking leads from developed countries and are setting MEPS for transformers (15+). So far, manufacturers and supply chain has been able to meet this challenge through use of better material and improved manufacturing methods. Future gains will require further development of new materials, precision equipment and improved processes.

9 Contact Informtion Mahesh P. Sampat P : C : maheshsampat@gmail.com maheshsampat@bellsouth.net

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