1 | Building Technologies Program eere.energy.gov

The Parker Ranch installation in Hawaii

BUILDING TECHNOLOGIES PROGRAM

Distribution Transformers

Energy Conservation Program

LBNL Staff

U.S. Department of Energy

Energy Efficiency & Renewable Energy

November 7, 2011
2 | Building Technologies Program eere.energy.gov

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

Results for Low Voltage Dry-Type Transformers

Prepared for the Low Voltage Dry-Type Distribution Transformers Negotiated 

Rulemaking Working Group

November 7, 2011

Contents

• Life-Cycle Cost Results for Design Lines 6 – 8

• Payback Period Results for Design Lines 6 – 8

• Materials Selection Results for Design Lines 6 – 8

• National Impacts Results by Efficiency Level for Equipment Classes 3 and 4

• Description of Trial Standard Levels

• National Impacts Results by Trial Standard Level for Equipment Classes 3 and 4

Contents 
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Design Line 6 LCC Results

Efficiency Level

1 2 3 4 5 6 7

Efficiency (%) 98.23% 98.47% 98.60% 98.80% 98.93% 99.17% 99.44%

Transformers with Net Increase in LCC (%) 3.06% 8.04% 37.51% 18.40% 20.34% 41.15% 95.65%

Transformers with Net LCC Savings (%) 96.51% 91.96% 62.49% 81.60% 79.66% 58.85% 4.35%

Transformers with No Impact on LCC (%) 0.43% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%

Mean LCC Savings ($) 196 226 90 298 304 127 -969

Median LCC Savings ($) 185 210 66 264 273 90 -1019

-2000

-1500

-1000

-500

0 

500

1000

1500

CSL 1 CSL 2 CSL 3 CSL 4 CSL 5 CSL 6 CSL 7

Average LCC Savings ($)

Efficiency Level

Design Line 6 Average LCC Savings

Average; Median; Box 25%-75%; Whisker 5%-95%
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Design Line 7 LCC Results

Efficiency Level

1 2 3 4 5 6 7

Efficiency (%) 98.23% 98.47% 98.60% 98.80% 98.93% 99.17% 99.44% 

Transformers with Net Increase in LCC (%) 0.0% 0.0% 0.0% 0.6% 2.0% 2.9% 35.4% 

Transformers with Net LCC Savings (%) 96.1% 100.0% 100.0% 99.4% 98.0% 97.1% 64.6% 

Transformers with No Impact on LCC (%) 3.9% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 

Mean LCC Savings ($) 1203 1916 1996 2052 2242 2502 678 

Median LCC Savings ($) 1117 1864 1949 1978 2138 2404 528 

-3000

-2000

-1000

0 

1000

2000

3000

4000

5000

6000

CSL 1 CSL 2 CSL 3 CSL 4 CSL 5 CSL 6 CSL 7

Average LCC Savings ($)

Efficiency Level

Design Line 7 Average LCC Savings

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

median

average
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Design Line 8 LCC Results

Efficiency Level

1 2 3 4 5 6 7

Efficiency (%) 98.80% 99.02% 99.14% 99.25% 99.32% 99.44% 99.58% 

Transformers with Net Increase in LCC (%) 6.01% 1.62% 1.49% 5.89% 3.83% 3.83% 54.23% 

Transformers with Net LCC Savings (%) 93.99% 98.38% 98.51% 94.11% 96.17% 96.17% 45.77% 

Transformers with No Impact on LCC (%) 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 

Mean LCC Savings ($) 1115 3514 4501 3836 6142 6148 -48 

Median LCC Savings ($) 967 3352 4315 3599 5866 5875 -394 

-10000

-5000

0 

5000

10000

15000

CSL 1 CSL 2 CSL 3 CSL 4 CSL 5 CSL 6 CSL 7

Average LCC Savings ($)

Efficiency Level

Design Line 8 Average LCC Savings

Average; Median; Box 25%-75%; Whisker 5%-95%
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Design Line 6 PBP Results

0 

10

20

30

40

50

60

CSL 1 CSL 2 CSL 3 CSL 4 CSL 5 CSL 6 CSL 7

Average Payback Period (years)

Efficiency Level

Design Line 6 Average Payback Period

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

 

Efficiency Level

1 2 3 4 5 6 7 

Mean Payback (Years) 4.7 9.6 17.2 13.2 13.7 17.6 35.4 

Median Payback (Years) 4.0 9.1 15.9 12.8 13.4 17.2 34.4 

Transformers having Well Defined Payback (%) 99.47% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 

Transformers having Undefined Payback (%) 0.53% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 

Mean Retail Cost ($) 1,257 1,344 1,527 1,716 1,788 2,020 2,913 

Mean Installation Costs ($) 973 1,034 1,101 1,029 1,067 1,167 1,490 

Mean Operating Costs ($) 134 125 119 101 95 87 80 

Mean Incremental First Cost ($) 54 203 453 570 679 1,011 2,228 

Mean Operating Cost Savings ($) 14 23 29 47 53 61 68 

Payback of Average Transformer 4.0 8.8 15.5 12.2 12.8 16.5 32.8 
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Design Line 7 PBP Results

0 

5 

10

15

20

25

30

CSL 1 CSL 2 CSL 3 CSL 4 CSL 5 CSL 6 CSL 7

Average Payback Period (years)

Efficiency Level

Design Line 7 Average Payback Period

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

Efficiency Level

1 2 3 4 5 6 7 

Mean Payback (Years) 0.0 0.0 0.0 2.5 4.7 5.9 16.6 

Median Payback (Years) 0.0 0.0 0.0 2.4 4.5 5.7 16.0 

Transformers having Well Defined Payback (%) 96% 100% 100% 100% 100% 100% 100% 

Transformers having Undefined Payback (%) 4% 0% 0% 0% 0% 0% 0% 

Mean Retail Cost ($) 2,567 2,575 2,582 2,832 3,167 3,430 5,147 

Mean Installation Costs ($) 1,624 1,567 1,573 1,675 1,728 1,836 2,360 

Mean Operating Costs ($) 282 246 241 219 188 154 131 

Mean Incremental First Cost ($) -21 -70 -58 294 682 1,053 3,295 

Mean Operating Cost Savings ($) 64 100 105 127 158 192 214 

Payback of Average Transformer -0.3 -0.7 -0.6 2.3 4.3 5.5 15.4 
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Design Line 8 PBP Results

 

Efficiency Level

1 2 3 4 5 6 7 

Mean Payback (Years) 8.7 4.5 4.3 9.1 7.2 7.2 19.9 

Median Payback (Years) 8.3 4.4 4.2 8.9 7.0 7.0 19.4 

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

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

Mean Retail Cost ($) 6,721 7,028 7,244 8,872 9,106 9,106 15,586 

Mean Installation Costs ($) 2,842 2,771 2,784 3,147 3,156 3,156 3,903 

Mean Operating Costs ($) 737 595 529 457 320 320 264 

Mean Incremental First Cost ($) 791 1,027 1,256 3,247 3,490 3,489 10,716 

Mean Operating Cost Savings ($) 103 245 311 382 520 520 576 

Payback of Average Transformer 7.7 4.2 4.0 8.5 6.7 6.7 18.6 

0 

5 

10

15

20

25

30

35

CSL 1 CSL 2 CSL 3 CSL 4 CSL 5 CSL 6 CSL 7

Average Payback Period (years)

Efficiency Level

Design Line 8 Average Payback Period

Average; Median; Box 25%-75%; Whisker 5%-95%
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Core Materials Selection

Materials Efficiency Level

Base 1 2 3 4 5 6 7 

M12 

M6 4.8% 0.0% 

M5 83.1% 0.0% 0.0% 

M4 11.8% 53.0% 0.0% 0.0% 

M3 0.2% 47.0% 100.0% 64.6% 0.0% 

M2 

H0 0.0% 0.0% 35.2% 0.0% 0.0% 

ZDMH 

SA1 0.0% 0.0% 0.2% 100.0% 100.0% 100.0% 100.0%

Materials Efficiency Level

Base 1 2 3 4 5 6 7 

M12 0.0% 0.0% 

M6 99.3% 80.7% 0.0% 0.0% 

M5 

M4 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 

M3 0.7% 0.2% 0.0% 0.0% 0.0% 0.0% 

M2 

H0 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 

ZDMH 19.1% 100.0% 100.0% 99.8% 

SA1 0.0% 0.0% 0.0% 0.0% 0.2% 100.0% 100.0% 100.0%

Design Line 6 Design Line 7

•The results presented here reflect the fraction core materials 

sampled in the LCC and PBP analysis.

•NULL (blank) values indicate that were no designs available for a 

given material and efficiency level.
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Core Materials Selection (cont)

Materials Efficiency Level

Basecase 1 2 3 4 5 6 7 

M12 

M6 100.0% 0.0% 0.0% 

M5 0.0% 97.8% 0.0% 

M4 0.0% 0.0% 0.0% 0.0% 

M3 0.0% 1.5% 98.0% 0.0% 0.0% 

M2 

H0 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 

ZDMH 0.7% 2.0% 100.0% 97.9% 

SA1 0.0% 0.0% 0.0% 0.0% 2.2% 100.0% 100.0% 100.0%

Design Line 8
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National Impacts Summary Results 

for LVDT, by Efficiency Level

Summary Results by Efficiency Level for Low-Voltage Dry-Type Transformers

 Efficiency Level

 Base 1 2 3 4 5 6 7 

Transformer Shipments 2015-2044 (Billion KVA) 0.617 0.622 0.623 0.622 0.622 0.614 0.613 0.608

Equipment Cost ($Billions) 17.467 5.824 6.494 5.651 5.727 -5.661 -7.163 -18.038

Operating Cost (Savings in TSLs) ($Billions) 26.679 12.543 15.543 15.307 17.923 13.319 16.328 18.776

Cumulative Source Savings 2044 (Quads) 1.346 1.670 1.645 1.921 1.449 1.762 2.010

Net Present Value at 3% Discount Rate 

($Billions) 18.367 22.037 20.958 23.650 7.657 9.165 0.737

Net Present Value at 7% Discount Rate 

($Billions) 6.980 8.279 7.771 8.642 1.329 1.516 -3.290
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Summary Results by EL for Equipment Class 3

National Impacts Results for LVDT, 

by Efficiency Level

Summary Results by EL for Equipment Class 4

Efficiency Level

Base 1 2 3 4 5 6 7 

Transformer Shipments 2015-2044 (Billion KVA) 0.02 0.02 0.02 0.02 0.02 0.02 0.02 0.02

Equipment Cost ($Billions) 0.87 0.27 0.26 0.22 0.19 -0.23 -0.36 -0.85

Operating Cost (Savings in TSLs) ($Billions) 0.83 0.33 0.40 0.41 0.54 0.44 0.52 0.59

Cumulative Source Savings 2044 (Quads) 0.04 0.04 0.04 0.06 0.05 0.06 0.06

Net Present Value at 3% Discount Rate ($Billions) 0.60 0.66 0.63 0.73 0.20 0.17 -0.25

Net Present Value at 7% Discount Rate ($Billions) 0.24 0.26 0.24 0.27 0.02 -0.02 -0.25

 

Efficiency Level

Base 1 2 3 4 5 6 7 

Transformer Shipments 2015-2044 (Billion KVA) 0.60 0.60 0.60 0.60 0.60 0.59 0.59 0.59

Equipment Cost ($Billions) 16.60 5.56 6.24 5.43 5.54 -5.43 -6.81 -17.19

Operating Cost (Savings in TSLs) ($Billions) 25.85 12.21 15.14 14.90 17.39 12.88 15.80 18.18

Cumulative Source Savings 2044 (Quads) 1.31 1.63 1.60 1.86 1.40 1.71 1.95

Net Present Value at 3% Discount Rate ($Billions) 17.77 21.38 20.33 22.92 7.45 9.00 0.99

Net Present Value at 7% Discount Rate ($Billions) 6.74 8.02 7.53 8.37 1.31 1.53 -3.04
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EC 3 EC 4

DL6 DL7 DL8

TSL1 EL 5 EL 6 EL 5

TSL2 EL 4 EL 4 EL 4

TSL3 EL 4 EL 5 EL 5

TSL4 EL 4 EL 5 EL 3

TSL5 EL 6 EL 6 EL 5

TSL6 EL 7 EL 7 EL 7

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
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National Impacts Results for LVDT, 

by Trial Standard Level

Summary Results by TSL for Low-Voltage Dry-Type 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) 0.62 0.62 0.62 0.62 0.62 0.61 0.61

Equipment Cost ($Billions) 17.47 2.73 5.20 3.45 5.33 -7.16 -18.04

Operating Cost (Savings in TSLs) ($Billions) 26.68 20.54 17.51 18.69 18.76 16.33 18.78

Cumulative Source Savings 2044 (Quads) 2.21 1.88 2.02 2.02 1.76 2.01

Net Present Value at 3% Discount Rate ($Billions) 23.27 22.72 22.14 24.09 9.16 0.74

Net Present Value at 7% Discount Rate ($Billions) 7.94 8.24 7.72 8.70 1.51 -3.29
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Summary Results by TSL for Equipment Class 3 

National Impacts Results for LVDT, 

by Trial Standard Level

Summary Results by TSL for Equipment Class 4 

Trial Standard Level

Base 1 2 3 4 5 6 

Transformer Shipments 2015-2044 (Billion KVA) 0.02 0.02 0.02 0.02 0.02 0.02 0.02

Equipment Cost ($Billions) 0.87 0.10 0.16 0.13 0.19 -0.36 -0.85

Operating Cost (Savings in TSLs) ($Billions) 0.83 0.56 0.52 0.51 0.54 0.52 0.59

Cumulative Source Savings 2044 (Quads) 0.06 0.06 0.06 0.06 0.06 0.06

Net Present Value at 3% Discount Rate ($Billions) 0.66 0.69 0.64 0.73 0.17 -0.25

Net Present Value at 7% Discount Rate ($Billions) 0.23 0.25 0.23 0.27 -0.02 -0.25

 

Trial Standard Level

Base 1 2 3 4 5 6 

Transformer Shipments 2015-2044 (Billion KVA) 0.60 0.60 0.60 0.60 0.60 0.59 0.59

Equipment Cost ($Billions) 16.60 2.63 5.04 3.31 5.13 -6.81 -17.19

Operating Cost (Savings in TSLs) ($Billions) 25.85 19.98 16.99 18.18 18.22 15.80 18.18

Cumulative Source Savings 2044 (Quads) 2.15 1.82 1.96 1.96 1.71 1.95

Net Present Value at 3% Discount Rate ($Billions) 22.61 22.03 21.49 23.36 8.99 0.99

Net Present Value at 7% Discount Rate ($Billions) 7.70 7.99 7.48 8.43 1.53 -3.04