1 | Building Technologies Program eere.energy.gov

The Parker Ranch installation in Hawaii

BUILDING TECHNOLOGIES PROGRAM

Distribution Transformers

Energy Conservation Program

LBNL Staff on behalf of

U.S. Department of Energy

Energy Efficiency & Renewable Energy

November 30, 2011
2 | Building Technologies Program eere.energy.gov

Draft Life-Cycle Cost, Payback Period and National Impacts Analysis 

Results for Medium Voltage Liquid-Immersed Transformers 

Based on 2010 Material Prices

Prepared for the Medium Voltage Distribution Transformers Negotiated 

Rulemaking Working Group

November 30, 2011

Contents

• Engineering Results for Design Lines 1 - 5

• Life-Cycle Cost Results for Design Lines 1 – 5

• Payback Period Results for Design Lines 1 – 5

• National Impacts Results by TSL for Equipment Classes 1 & 2

Contents
3 | Building Technologies Program eere.energy.gov

Design Line 1: Engineering Results

$1,500 

$2,000 

$2,500 

$3,000 

$3,500 

$4,000 

99.00% 99.10% 99.20% 99.30% 99.40% 99.50% 99.60%

Manufacturer Selling Price ($)

Efficiency at 50% Load, Temperature Corrected

M5_CuAl_dgw_sh

M3_AlAl_dgw_sh

M3_CuAl_dgw_sh

M2_AlAl_dgw_sh

M2_CuAl_dgw_sh

ZDMH_AlAl_dgw_sh

ZDMH_CuCu_dgw_sh

SA1_AlAl_dgw_sh

SA1_CuCu_dgw_sh

CSLs

CSL 0

2007 FR

CSL 1 CSL 2 CSL 3 CSL 4 CSL 5 CSL 6
4 | Building Technologies Program eere.energy.gov

Design Line 2: Engineering Results

$500 

$1,000 

$1,500 

$2,000 

$2,500 

$3,000 

98.80% 98.90% 99.00% 99.10% 99.20% 99.30% 99.40% 99.50% 99.60%

Manufacturer Selling Price ($)

Efficiency at 50% Load, Temperature Corrected

M5_CuAl_dgw_sh

M4_AlAl_dgw_sh

M4_CuAl_dgw_sh

M3_AlAl_dgw_sh

M3_CuAl_dgw_sh

M2_AlAl_dgw_sh

M2_CuAl_dgw_sh

ZDMH_AlAl_dgw_sh

ZDMH_CuCu_dgw_sh

SA1_AlAl_dgw_co

SA1_CuCu_dgw_co

CSLs

CSL 0

2007 FR

CSL 1 CSL 2 CSL 3 CSL 4 CSL 5 CSL 6 CSL 7
5 | Building Technologies Program eere.energy.gov

Design Line 3: Engineering Results

$-

$5,000 

$10,000 

$15,000 

$20,000 

$25,000 

99.40% 99.45% 99.50% 99.55% 99.60% 99.65% 99.70% 99.75% 99.80%

Manufacturer Selling Price ($)

Efficiency at 50% Load, Temperature Corrected

M5_CuAl_dgw_sh

M4_AlAl_dgw_sh

M4_CuAl_dgw_sh

M3_AlAl_dgw_sh

M3_CuAl_dgw_sh

M2_AlAl_dgw_sh

M2_CuAl_dgw_sh

ZDMH_AlAl_dgw_sh

ZDMH_CuCu_dgw_sh

SA1_AlAl_dgw_co

SA1_CuCu_dgw_sh

SA1_CuCu_dgw_co

CSLs

CSL 0

2007 FR

CSL 1 CSL 2 CSL 3 CSL 4 CSL 5 CSL 6 CSL 7
6 | Building Technologies Program eere.energy.gov

Design Line 4: Engineering Results

$2,500 

$3,500 

$4,500 

$5,500 

$6,500 

$7,500 

$8,500 

$9,500 

$10,500 

$11,500 

99.00% 99.10% 99.20% 99.30% 99.40% 99.50% 99.60% 99.70%

Manufacturer Selling Price ($)

Efficiency at 50% Load, Temperature Corrected

M5_CuAl_dgw_5leg

M3_AlAl_dgw_5leg

M3_CuAl_dgw_5leg

M2_AlAl_dgw_5leg

M2_CuAl_dgw_5leg

ZDMH_AlAl_dgw_5leg

ZDMH_CuCu_dgw_5leg

SA1_AlAl_dgw_5leg

SA1_CuCu_dgw_5leg

CSLs

CSL 0

2007 FR

CSL 1 CSL 2 CSL 3 CSL 4 CSL 5 CSL 6 CSL 7
7 | Building Technologies Program eere.energy.gov

Design Line 5: Engineering Results

$15,000 

$25,000 

$35,000 

$45,000 

$55,000 

$65,000 

99.40% 99.45% 99.50% 99.55% 99.60% 99.65% 99.70% 99.75%

Manufacturer Selling Price ($)

Efficiency at 50% Load, Temperature Corrected

M4_CuAl_dgw_5leg

M3_AlAl_dgw_5leg

M3_CuAl_dgw_5leg

M2_AlAl_dgw_5leg

M2_CuAl_dgw_5leg

ZDMH_AlAl_dgw_5leg

ZDMH_CuCu_dgw_5leg

SA1_AlAl_dgw_5leg

SA1_CuCu_dgw_5leg

CSLs

CSL 0

2007 FR

CSL 1 CSL 2 CSL 3 CSL 4 CSL 5 CSL 6
8 | Building Technologies Program eere.energy.gov

Design Line 1 LCC Results

 

Efficiency Level

1 2 3 4 5 6 

Efficiency (%) 99.16% 99.22% 99.25% 99.31% 99.42% 99.50% 

Transformers with Net LCC Cost (%) 53.70% 3.70% 3.70% 5.80% 9.80% 47.60% 

Transformers with No Change in LCC (%) 0.10% 0.10% 0.10% 0.00% 0.00% 0.00% 

Transformers with Net LCC Benefit (%) 46.20% 96.20% 96.20% 94.20% 90.20% 52.40% 

Mean LCC Savings ($) 79 715 715 616 741 172 

Median LCC Savings ($) -25 724 724 620 687 35 

-1500

-1000

-500

0

500

1000

1500

2000

2500

EL 1 EL 2 EL 3 EL 4 EL 5 EL 6

Average LCC Savings ($)

Efficiency Level

Design Line 1 Average LCC Savings

Average; Median; Box 25%-75%; Whisker 5%-95%

median

average
9 | Building Technologies Program eere.energy.gov

Design Line 2 LCC Results

 

Efficiency Level

1 2 3 4 5 6 7 

Efficiency (%) 99.00% 99.07% 99.11% 99.18% 99.31% 99.41% 99.46% 

Transformers with Net LCC Cost (%) 21.00% 21.10% 28.90% 31.10% 51.80% 72.70% 83.70% 

Transformers with No Change in LCC (%) 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 

Transformers with Net LCC Benefit (%) 79.00% 78.90% 71.10% 68.90% 48.20% 27.30% 16.30% 

Mean LCC Savings ($) 250 104 -130 -182 -378 -628 -860 

Median LCC Savings ($) 324 319 254 222 -27 -324 -580 

-4000

-3500

-3000

-2500

-2000

-1500

-1000

-500

0

500

1000

1500

EL 1 EL 2 EL 3 EL 4 EL 5 EL 6 EL 7

Average LCC Savings ($)

Efficiency Level

Design Line 2 Average LCC Savings

Average; Median; Box 25%-75%; Whisker 5%-95%

median

average
10 | Building Technologies Program eere.energy.gov

Design Line 3 LCC Results

 

Efficiency Level

1 2 3 4 5 6 7 

Efficiency (%) 99.48% 99.51% 99.54% 99.57% 99.61% 99.69% 99.73% 

Transformers with Net LCC Cost (%) 11.60% 9.30% 4.60% 4.10% 4.60% 9.80% 27.00% 

Transformers with No Change in LCC (%) 1.10% 1.10% 0.00% 0.00% 0.00% 0.00% 0.00% 

Transformers with Net LCC Benefit (%) 87.30% 89.60% 95.40% 95.90% 95.40% 90.20% 73.00% 

Mean LCC Savings ($) 3163 4378 5255 5612 6531 6702 3955 

Median LCC Savings ($) 2507 4469 5305 5576 6670 6453 3193 

-4000

-2000

0

2000

4000

6000

8000

10000

12000

14000

16000

18000

EL 1 EL 2 EL 3 EL 4 EL 5 EL 6 EL 7

Average LCC Savings ($)

Efficiency Level

Design Line 3 Average LCC Savings

Average; Median; Box 25%-75%; Whisker 5%-95%

median

average
11 | Building Technologies Program eere.energy.gov

Design Line 4 LCC Results

 

Efficiency Level

1 2 3 4 5 6 7 

Efficiency (%) 99.16% 99.22% 99.25% 99.31% 99.42% 99.50% 99.60% 

Transformers with Net LCC Cost (%) 1.20% 2.80% 2.80% 2.70% 2.30% 4.60% 25.10% 

Transformers with No Change in LCC (%) 1.00% 1.00% 1.00% 1.00% 0.30% 0.00% 0.00% 

Transformers with Net LCC Benefit (%) 97.80% 96.20% 96.20% 96.30% 97.40% 95.40% 69.10% 

Mean LCC Savings ($) 1122 3536.9 3536.9 3544.7 3654.3 3629 1907 

Median LCC Savings ($) 896 3597.4 3597.4 3597.4 3710.6 3463 1527 

0

1000

2000

3000

4000

5000

6000

7000

8000

EL 1 EL 2 EL 3 EL 4 EL 5 EL 6 EL 7

Average LCC Savings ($)

Efficiency Level

Design Line 4 Average LCC Savings

Average; Median; Box 25%-75%; Whisker 5%-95%

median

average
12 | Building Technologies Program eere.energy.gov

Design Line 5 LCC Results

 

Efficiency Level

1 2 3 4 5 6 

Efficiency (%) 99.48% 99.51% 99.54% 99.57% 99.61% 99.69% 

Transformers with Net LCC Cost (%) 14.60% 9.60% 7.20% 6.10% 8.70% 42.40% 

Transformers with No Change in LCC (%) 0.20% 0.00% 0.00% 0.00% 0.00% 0.00% 

Transformers with Net LCC Benefit (%) 85.20% 90.40% 92.80% 93.90% 91.30% 57.60% 

Mean LCC Savings ($) 9819 12108 12860 13566 13053 2525 

Median LCC Savings ($) 9648 12287 12900 13273 12739 2190 

-30000

-20000

-10000

0

10000

20000

30000

EL 1 EL 2 EL 3 EL 4 EL 5 EL 6

Average LCC Savings ($)

Efficiency Level

Design Line 5 Average LCC Savings

Average; Median; Box 25%-75%; Whisker 5%-95%

median

average
13 | Building Technologies Program eere.energy.gov

Design Line 1 PBP Results

 Efficiency Level

1 2 3 4 5 6 

Mean Payback (Years) 29.2 7.2 7.2 9.4 10.9 18.8 

Median Payback (Years) 18.5 6.9 6.9 9.0 10.5 17.8 

Transformers having Well Defined Payback (%) 88.60% 99.90% 99.90% 100.00% 100.00% 100.00% 

Transformers having Undefined Payback (%) 11.40% 0.10% 0.10% 0.00% 0.00% 0.00% 

Mean Retail Cost ($) 2,382 2,490 2,490 2,597 2,853 3,402 

Mean Installation Costs ($) 2,228 2,271 2,271 2,344 2,414 2,606 

Mean Operating Costs ($) 212 162 162 158 136 129 

Mean Incremental First Cost ($) 345 496 496 676 1,002 1,742 

Mean Operating Cost Savings ($) 22 71 71 75 97 104 

Payback of Average Transformer 15.9 7.0 7.0 9.0 10.3 16.7 

0

20

40

60

80

100

120

EL 1 EL 2 EL 3 EL 4 EL 5 EL 6

Average Payback Period (years)

Efficiency Level

Design Line1 Average Payback Period

Average; Median; Box 25%-75%; Whisker 5%-95%

median

average
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Design Line 2 PBP Results

 Efficiency Level

1 2 3 4 5 6 7 

Mean Payback (Years) 11.5 15.3 21.3 22.8 27.2 31.4 34.6 

Median Payback (Years) 5.4 7.1 9.2 11.2 17.3 22.8 26.9 

Transformers having Well Defined Payback (%) 96.20% 99.50% 99.50% 99.60% 99.50% 99.60% 99.60% 

Transformers having Undefined Payback (%) 3.80% 0.50% 0.50% 0.40% 0.50% 0.40% 0.40% 

Mean Retail Cost ($) 1,465 1,509 1,560 1,629 1,884 2,091 2,612 

Mean Installation Costs ($) 1782 2019 2254 2338 2513 2665 2462 

Mean Operating Costs ($) 110 102 100 95 83 78 73 

Mean Incremental First Cost ($) 232 512 799 952 1,382 1,741 2,059 

Mean Operating Cost Savings ($) 30 37 39 45 56 61 66 

Payback of Average Transformer 7.8 13.8 20.3 21.4 24.7 28.3 31.2 

0

10

20

30

40

50

60

70

80

90

100

EL 1 EL 2 EL 3 EL 4 EL 5 EL 6 EL 7

Average Payback Period (years)

Efficiency Level

Design Line 2 Average Payback Period

Average; Median; Box 25%-75%; Whisker 5%-95%

median

average
15 | Building Technologies Program eere.energy.gov

Design Line 3 PBP Results

 Efficiency Level

1 2 3 4 5 6 7 

Mean Payback (Years) 5.1 4.3 5.2 5.2 6.1 10.3 16.7 

Median Payback (Years) 3.1 2.6 3.7 3.9 4.7 7.9 13.4 

Transformers having Well Defined Payback (%) 93.20% 96.40% 99.90% 100.00% 100.00% 100.00% 99.50% 

Transformers having Undefined Payback (%) 6.80% 3.60% 0.10% 0.00% 0.00% 0.00% 0.50% 

Mean Retail Cost ($) 9,008 9,139 9,716 9,863 10,488 12,764 16,269 

Mean Installation Costs ($) 4,243 4,252 4,371 4,402 4,524 4,997 5,680 

Mean Operating Costs ($) 1,128 1,044 965 938 855 714 650 

Mean Incremental First Cost ($) 763 904 1,599 1,777 2,524 5,273 9,461 

Mean Operating Cost Savings ($) 249 333 413 439 522 664 728 

Payback of Average Transformer 3.1 2.7 3.9 4.0 4.8 7.9 13.0 

0

5

10

15

20

25

EL 1 EL 2 EL 3 EL 4 EL 5 EL 6 EL 7

Average Payback Period (years)

Efficiency Level

Design Line 3 Average Payback Period

Average; Median; Box 25%-75%; Whisker 5%-95%

median

average
16 | Building Technologies Program eere.energy.gov

Design Line 4 PBP Results

 Efficiency Level

1 2 3 4 5 6 7 

Mean Payback (Years) 2.4 3.4 3.4 3.5 3.9 7.8 14.7 

Median Payback (Years) 2.2 3.2 3.2 3.2 3.5 7.2 14.0 

Transformers having Well Defined Payback (%) 98.70% 98.40% 98.40% 98.60% 99.70% 100.00% 94.20% 

Transformers having Undefined Payback (%) 1.30% 1.60% 1.60% 1.40% 0.30% 0.00% 0.00% 

Mean Retail Cost ($) 6,031 6,553 6,553 6,562 6,655 7,752 10,737 

Mean Installation Costs ($) 4,042 4,181 4,181 4,180 4,221 4,581 4,709 

Mean Operating Costs ($) 668 486 486 485 472 402 336 

Mean Incremental First Cost ($) 185 846 846 854 988 2,445 5,561 

Mean Operating Cost Savings ($) 77 260 260 261 273 343 415 

Payback of Average Transformer 2.4 3.3 3.3 3.3 3.6 7.1 13.4 

0

2

4

6

8

10

12

EL 1 EL 2 EL 3 EL 4 EL 5 EL 6 EL 7

Average Payback Period (years)

Efficiency Level

Design Line 4 Average Payback Period

Average; Median; Box 25%-75%; Whisker 5%-95%

median

average
17 | Building Technologies Program eere.energy.gov

Design Line 5 PBP Results

 Efficiency Level

1 2 3 4 5 6 

Mean Payback (Years) 5.3 5.4 6.6 7.1 9.2 18.6 

Median Payback (Years) 3.2 3.5 5.1 5.8 7.9 16.7 

Transformers having Well Defined Payback (%) 91.20% 96.70% 99.10% 99.80% 100.00% 100.00% 

Transformers having Undefined Payback (%) 8.80% 3.30% 0.90% 0.20% 0.00% 0.00% 

Mean Retail Cost ($) 29,078 29,605 31,424 32,543 36,055 57,368 

Mean Installation Costs ($) 8,516 8,636 8,875 9,032 9,497 9,835 

Mean Operating Costs ($) 3,423 3,262 3,106 2,996 2,804 2,186 

Mean Incremental First Cost ($) 2,293 2,940 4,998 6,274 10,250 31,902 

Mean Operating Cost Savings ($) 671 832 987 1,098 1,290 1,907 

Payback of Average Transformer 3.4 3.5 5.1 5.7 7.9 16.7 

0

5

10

15

20

25

30

35

Average Payback Period (years)

EL 1 EL 2 EL 3 EL 4 EL 5 EL 6

Efficiency Level

Design Line 5 Average Payback Period

Average; Median; Box 25%-75%; Whisker 5%-95%

median

average
18 | Building Technologies Program eere.energy.gov

Equipment Class (EC) 1 EC 2

DL1 DL2 DL3 DL4 DL5

TSL1 EL 5 EL 1 EL 6 EL 5 EL 4

TSL2 EL 6 EL 2 EL 7 EL 7 EL 6

TSL3 EL 3 EL 3 EL 3 EL 3 EL 5

TSL4 EL 3 EL 1 EL 3 EL 2 EL 2

TSL5 EL 4 EL 3 EL 4 EL 3 EL 4

TSL6 EL 6 EL 7 EL 7 EL 7 EL 6

Proposed Trial Standard Levels 

and Mapping of TSLs to ELs

The following draft Trial Standard Levels are presented for discussion.

Draft Trial Standard Levels (TSLs) Description

1. Minimum LCC / Max NPV

2. Max Energy Savings with positive (or near zero) NPV at 3% discount rate

3. 30% Reduction in Operating Costs

4. Materials constraint (greatest LCC Savings with M3 steel available as a 

design option)

5. Materials constraint plus (gap-fill between TSL 4 and TSL 6)

6. Maximum Technology
19 | Building Technologies Program eere.energy.gov

National Impacts Results for MV LiquidImmersed, by Trial Standard Level

Summary Results by TSL for Liquid-Immersed Transformers

Draft Trial Standard Levels (TSLs) Description

1. Minimum LCC / Max NPV

2. Max Energy Savings with positive (or near zero) NPV at 3% discount 

rate

3. 30% Reduction in Operating Costs

4. Materials constraint (greatest LCC Savings with M3 steel available as 

a design option)

5. Materials constraint plus (gap-fill between TSL 4 and TSL 6)

6. Maximum Technology

Trial Standard Level

Base 1 2 3 4 5 6 

Transformer Shipments 2015-2044 (Billion KVA) 1.95 1.94 1.92 1.94 1.95 1.94 1.91 

Equipment Cost ($Billions) 65.16 -8.48 -25.63 -13.81 -5.67 -13.14 -41.42 

Operating Cost Savings ($Billions) 78.12 22.56 32.33 23.88 18.71 22.83 38.88 

Cumulative Source Savings 2044 (Quads) 1.46 2.25 1.57 1.15 1.48 2.78 

Net Present Value at 3% Discount Rate ($Billions) 14.09 6.699 10.07 13.04 9.70 -2.54 

Net Present Value at 7% Discount Rate ($Billions) 2.85 -3.07 0.51 3.17 0.55 -9.25 
20 | Building Technologies Program eere.energy.gov

Summary Results by TSL for Equipment Class 1

National Impacts Results for MV LiquidImmersed, by Trial Standard Level

Summary Results by TSL for Equipment Class 2

Trial Standard Level

Base 1 2 3 4 5 6 

Transformer Shipments 2015-2044 (Billion KVA) 0.80 0.80 0.79 0.79 0.80 0.79 0.79 

Equipment Cost ($Billions) 45.01 -5.63 -10.88 -9.86 -3.98 -10.41 -26.68 

Operating Cost Savings ($Billions) 39.29 11.61 13.64 11.88 9.78 12.14 20.19 

Cumulative Source Savings 2044 (Quads) 0.76 0.92 0.78 0.61 0.80 1.46 

Net Present Value at 3% Discount Rate ($Billions) 5.99 2.76 2.02 5.80 1.73 -6.48 

Net Present Value at 7% Discount Rate ($Billions) 0.81 -1.30 -1.27 1.13 -1.48 -7.48 

 Trial Standard Level

Base 1 2 3 4 5 6 

Transformer Shipments 2015-2044 (Billion KVA) 1.15 1.15 1.13 1.15 1.15 1.15 1.13 

Equipment Cost ($Billions) 20.14 -2.85 -14.75 -3.95 -1.69 -2.73 -14.75 

Operating Cost Savings ($Billions) 38.82 10.95 18.69 12.00 8.93 10.69 18.69 

Cumulative Source Savings 2044 (Quads) 0.70 1.32 0.79 0.54 0.68 1.32 

Net Present Value at 3% Discount Rate ($Billions) 8.10 3.94 8.05 7.23 7.97 3.94 

Net Present Value at 7% Discount Rate ($Billions) 2.04 -1.77 1.78 2.04 2.03 -1.77 
21 | Building Technologies Program eere.energy.gov

National Impacts Results for MV 

Liquid-Immersed, by Efficiency Level

Summary Results by Efficiency Level for Liquid-Immersed Transformers

Efficiency Level

Base 1 2 3 4 5 6 7 

Transformer Shipments 2015-2044 (Billion KVA) 1.95 1.95 1.95 1.94 1.94 1.93 1.92 1.91 

Equipment Cost ($Billions) 65.16 -4.38 -8.56 -12.19 -14.71 -21.47 -35.31 -41.42 

Operating Cost ($Billions) 78.12 11.79 20.16 21.82 24.00 29.69 36.69 38.88 

Cumulative Source Savings 2044 (Quads) 0.71 1.26 1.40 1.57 2.04 2.61 2.78 

Net Present Value at 3% Discount Rate ($Billions) 7.41 11.598 9.63 9.29 8.22 1.38 -2.54 

Net Present Value at 7% Discount Rate ($Billions) 1.61 2.12 0.745 0.09 -1.727 -6.77 -9.25 
22 | Building Technologies Program eere.energy.gov

Summary Results by EL for Equipment Class 1

National Impacts Results for MV 

Liquid-Immersed, by Efficiency Level

Summary Results by EL for Equipment Class 2

Efficiency Level

Base 1 2 3 4 5 6 7 

Transformer Shipments 2015-2044 (Billion KVA) 0.80 0.80 0.80 0.79 0.79 0.79 0.79 0.79 

Equipment Cost ($Billions) 45.01 -3.50 -6.87 -9.86 -11.98 -17.39 -23.33 -26.68 

Operating Cost ($Billions) 39.29 7.00 11.23 11.88 13.30 17.43 19.22 20.19 

Cumulative Source Savings 2044 (Quads) 0.44 0.72 0.78 0.89 1.23 1.38 1.46 

Net Present Value at 3% Discount Rate ($Billions) 3.50 4.36 2.02 1.31 0.04 -4.11 -6.48 

Net Present Value at 7% Discount Rate ($Billions) 0.46 0.08 -1.27 -1.95 -3.52 -6.06 -7.48 

Efficiency Level

Base 1 2 3 4 5 6 7 

Transformer Shipments 2015-2044 (Billion KVA) 1.15 1.15 1.15 1.15 1.15 1.15 1.13 1.13 

Equipment Cost ($Billions) 20.14 -0.89 -1.69 -2.33 -2.73 -4.08 -11.98 -14.75 

Operating Cost ($Billions) 38.82 4.79 8.93 9.94 10.71 12.26 17.48 18.69 

Cumulative Source Savings 2044 (Quads) 0.26 0.54 0.62 0.68 0.81 1.23 1.32 

Net Present Value at 3% Discount Rate ($Billions) 3.91 7.23 7.61 7.98 8.18 5.50 3.94 

Net Present Value at 7% Discount Rate ($Billions) 1.15 2.04 2.02 2.03 1.79 -0.71 -1.77