Environmental cost of distribution transformer losses

Improvements in energy efficiency of electrical equipment reduce the greenhouse gas (GHG) emissions and contribute to the protection of the environment. Moreover, as system investment and energy costs continue to increase, electric utilities are increasingly interested in installing energy-efficient transformers at their distribution networks. This paper analyzes the impact of the environmental cost of transformer losses on the economic evaluation of distribution transformers. This environmental cost is coming form the cost to buy GHG emission credits because of the GHG emissions associated with supplying transformer losses throughout the transformer lifetime. Application results on the Hellenic power system for 21 transformer offers under 9 different scenarios indicate that the environmental cost of transformer losses can reach on average 34% and 8% of transformer purchasing price for high loss and medium loss transformers, respectively. That is why it is important to incorporate the environmental cost of transformer losses into the economic evaluation of distribution transformers.