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A Distribution Transformer Comprehensive Optimal Planning and Sizing

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Conference Paper · May 2016

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2016 1st International Conference on New Research Achievements in Electrical and Computer Engineering (ICNRAECE)
A Distribution Transformer Comprehensive Optimal
Planning and Sizing Method
Mehran Hajiaghapour Moghimi, Ehsan Hajipour, Student Member, IEEE, Nima Farzin And Mehdi Vakilian, Senior
Member, IEEE
Center of Excellence in Power System Control and Management, Electrical Engineering Department
Sharif University of Technology
Tehran, Iran
moghimi_mehran@ee.sharif.edu, e_hajipour@ee.sharif.edu, n_farzin@ee.sharif.edu, vakilian@sharif.edu
Abstract— A significant part of the power system losses are
due to the distribution transformers energy losses. The high
share of these transformers to the electric energy losses of the
country’s power network in each year, contribute to an
important share in the loss of national yearly resources and
country budget. On the other hand due to the high rate of yearly
increase in electric energy usage in the country, optimal
distribution transformer planning and sizing has a very
important role in saving these losses over the future years. To
address these concerns, it is required for the distribution
companies to help optimize utilization of electric energy sources,
which results in increase of distribution companies’ benefits. This
paper introduces a method for proper, optimal and intelligent
selection of distribution transformers power rating and efficiency
class. This will increase the distribution companies’ benefits
through reduction in the respected energy losses. The previously
used methods in the country, didn’t model the replacement of a
distribution transformer with another one of different rating.
This paper models different scenarios, realizing yearly future
load growth in a region, besides possibility of stablishing a new
substation to develop a comprehensive algorithm for distribution
transformer planning and its replacement during its life. Final
target of this work is the development of a code for optimized
planning of a new distribution substation. The proposed
algorithm prepared for Tehran’s Large Electricity Distribution
Company and demonstrated promising results.
Keywords—Distribution transformer; owning cost;optimum
selection..
NOMENCLATURE
BCC Building construction cost for indoor substations ($)
ET Efficiency of transmission system (in percent)
EP Electric energy prices ($/kWh)
EIR Growth rate of energy prices (in percent)
i Interest rate (in percent)
IC Investment cost of substation ($)
LC Cost of losses ($)
LL Transformer load loss (kW)
LPS Cost of purchasing the ground for substation ($)
MC Maintenance cost of substation ($)
N Time window (year)
NLL No-load loss (kW)
OthC Ancillary costs of a substation without transformer($)
PRF Transformer peak responsibility factor (in percent)
PUL Peak per unit load (in percent)
978-1-5090-2702-6/16/$31.00 ©2016 IEEE
PL y Transformer annual peak load at year y (kW)
S nom Transformer rated power (kVA)
S (t ) Load demand at the hour t (kVA)
SI System investment cost for additional generation,
transmission and distribution needs ($/kW)
SV Salvage value of transformer ($)
TrC Distribution transformer purchase price ($)
T Length of study period (year)
TOC Total owning cost ($)
y Index of year
I. INTRODUCTION
Incrementally reducing the electricity subsidies in the
country, and the gradual increase of cost of electric energy
world widely, besides the privatization of distribution
companies; all contributed to a fast rise in the importance of
distribution system loss minimization in the country. At
present, although the importance of energy loss reduction is
acknowledged by distribution companies, however due to the
following reasons: the relatively very low price of electric
energy, lack of distribution transformer energy saving standard,
mass production of inefficient class of distribution transformers
in the country; the related studies and standard developments
are not welcomed by distribution companies. However, some
of the leading distribution companies decided individually to
purchase efficient distribution transformers, and to work
closely on proper selection of distribution transformer rating.
Many researches which have been carried out in 25 European
countries, show 33 % of losses in electric power systems is
related to the distribution transformers [1]. Now if we assume
that the total percentage of electricity loss in country’s power
network to be 28 %, the distribution transformers contribution
to these losses would be 9.2 %. If other overhead costs which
are related to distribution transformer losses, such as: the cost
of additional investments in sub-transmission substation,
transmission lines and the other parts of the network have been
added, this percentage can still increase. A proper strategy in
selection of power rating and efficiency of these distribution
transformers, in long term, can contribute to economic and
technical growth of a distribution company [2]. Therefore
compliance of a correct decision and a wise planning strategy
in this area can substantially reduce the investment cost in a
country. Some of the supporting reasons discussed in [3-5] are:
• Need to install power plant equipment of a lower
2016 1st International Conference on New Research Achievements in Electrical and Computer Engineering (ICNRAECE)
rating
• Provides a reduction of transmission lines rated
power
• The saved electric energy obtained due to
distribution transformer loss reduction will be
available to be sold to other consumers
• Increasing the distribution transformer expected
life time
Previously different researches were engaged in economic
aspects of optimal distribution transformer sizing [6-9].
According to all of those references, the distribution
transformers, in their lifetime, are not switched. So if a load
have significant amount of growth, a large additional
transformer should be installed in the starting of a planning
period. In this scenario, besides the high cost of purchase of a
new transformer, it brings a high amount of losses with itself.
Now distribution transformers if very heavily loaded, switched
with distribution system operators. For example in Tehran’s
distribution company if the transformer utilization factor is
over 80%, this transformer would be replaced by a new
transformer. With this strategy a question remained to be
answered. If instead of installing a large transformer at the
first year, a smaller transformer installed at the first year and
only if the load growth in the next coming years necessitates
the existing transformer switched with a larger transformer, a
better scenario is expected to be achieved.
In [10] dynamic programming used to address this concern.
This method is found to be attractive, however it requires the
application of artificial intelligent method (such as: the ant
colony method). Implementing this method into the industry
applications is relatively complex. On the other hand this
papers ignored some of the practical scenarios for
development of a distribution substation. For example; a
substation with two transformers, initially established with a
single transformer. In this paper, the economic aspects of a
distribution transformer selection is presented. Different
practical scenarios for constructing a new distribution
substation (pole-mounted or indoor substation with single
transformer, compact substation and substation with two
transformers) are studied from an economic point of view. The
concept of planning time window selection is introduced for
investment horizon management. This concept is introduced to
be used for solving the problem under a reasonable planning
horizon (generally 30 years for a distribution transformer) and
another one for investment horizon (generally 5 years for
distribution companies). Finally, through analysis of some
practical examples, it is showed that distribution transformers
replacement under practical scenarios, through the load
growth in a substation can highly reduce the transformer
owning cost, in practice.
II. OPTIMUM DISTRIBUTION TRANSFORMER POWER
RATING SELECTION FOR NEW SUBSTATION
Following scenarios can be considered for constructing a
new distribution substation:
1- Construction of a substation with single transformer
while, no transformer replacement is planned for
2- Construction of a substation with single transformer
while, transformer replacement is planned for
3- Construction of a compact substation
4- Construction of a substation with single transformer
while it can be upgraded to a substation with two
transformers, during its life time
5- Construction of a substation with two transformers
All of the above 5 scenarios are economically analyzed
through the proposed algorithm and the best way in each
scenario and its related cost is showed in the output of the
algorithm.
A. Construction of a single transformer substation without
transformer replacement policy subordination
In this scenario, load information and other economic and
thermal parameters is requested from the operator. At the
second step, employing the load information (current, demand,
load curve), and using the coefficient of coincidence, the
apparent consumed power and the consumer power load curve
are developed. Which are the third step in forecasting of the
load under a planning horizon. The power Load growth can
have a linear or an S shape characteristics. Employing the
different alternatives to comply with distribution transformer
energy saving standards and the transformer thermal loading
guidelines as presented in [11] which provides a distribution
transformer hot spot temperature as its output. A method for
calculation of the reduced lifetime of a distribution
transformer of class A insulation is presented [12].
LoL = V EQ × t (1)
n
V n
Δt n
V EQA = 1
n
(2)
 Δt n
1
98 −θ H
n
V =2 6
(3)
where LoL is the transformer loss of life in percent, n is
index of time interval, Δtn refers to one time interval and it
is equal to 1 hour here, ΘH (tn) is the transformer hottest spot
temperature which exists during the time interval Δtn. The
results obtained from the thermal studies are corrected when
the available harmonics are taken into account [13]. In this
scenario each transformer that overpass one of the following
condition (According to IEC 60076-7 [14]) can’t be selected
2016 1st International Conference on New Research Achievements in Electrical and Computer Engineering (ICNRAECE)

Selection new alternative for Selection of new alternative to

Inputs and database creation Inputs and database creation
transformer switching adding to substation at year K

Consumer load forecast Thermal and harmonic studies Consumer load forecast Load balancing
(CC & LG) (CC & LG)
Thermal and harmonic calculations
Selection of a new substation Yes Selection of a new substation
Lifetime<T-K
Yes
Lifetime<T-K
Thermal studies
Thermal studies No
Adding cost of new transformer to No
purchace cost Harmonic studies Adding cost of new transformer to
Harmonic studies
purchace cost
Calculation of first K years losses Calculation of TOC of added tarnsformer
No
No Lifetime<T
Lifetime<T
TOC calculation for switched Calculation of first transformer losses and
transformer Yes adding to TOC assuming K
Yes
Calculation of full load year, K
Calculation of full load year, K Calculation the second transformers TOC
Adding TOC to first TOC and adding to the first transformer
TOC calculation to year K
TOC calculation to year K
No All cases for Yes All cases for No No All cases for Yes All cases for No
first second first second
transformer? transformer? transformer? transformer?

Yes
Yes

Selecting case with min TOC Selecting case with min TOC

(1) (2)

Fig. 1. (1) 2nd scenario (2) 4th scenario

as an approved distribution transformer for installation.
• Hottest temperature rise above 120 C
• Overloads to a value greater than 1.5 times of the
transformer rating
• A transformer loss of life of more than 5 % of
transformer nominal lifetime in a year
Between the accepted transformers for installation, the
transformer with a lower total owning cost, is the optimum
selection of this scenario.
B. Construction of substation with single transformer with
transformer replacement policy subordination
In previous scenario, the selected transformer for
installation in a distribution system should only serve the load
under the planning horizon of interest, and for a specific load
growth. A problem is encountered, using this method for
selection of large distribution transformers in substations with a
high rate of load growth. If a transformer replacement policy is
not existed, then a large transformer should be installed at the
substation establishment. Installation of a large transformer at
the establishment of substation increases the investment cost
and the transformer no-load energy loss. In 2nd scenario, the
transformer can be replaced. Based on the results of thermal
studies, if one of the conditions mentioned in the previous
section was encountered before the kth year, the transformer
o
needs to be replaced before that year. Fig 1-(1) shows the
flowchart of this scenario.
C. Construction of compact substation
Generally, the term “compact” is used for indoor
substations. These substations are cheaper, due to a lower
purchase price of the needed land.
D. Construction of a single transformer substation
upgradable to a double transformer substation
This scenario is similar to the 2nd scenario, however instead
of transformer replacement, a second transformer can be
installed near the first transformer. In the proposed algorithm
rating of the first transformer should be higher than 400 kVA
(for an indoor distribution substation), however the second
transformer should have arbitrary rating. If the transformer in
the kth year of installation adhere one of the previously
mentioned conditions, the substation should be reformed to a
double transformer substation before the kth year. After
installation of second transformer the first step in their
operation is the distribution of loads in a way that the sum of
transformers no-load losses be minimized. Fig .1-(2) shows the
flowchart of this scenario.
2016 1st International Conference on New Research Achievements in Electrical and Computer Engineering (ICNRAECE)

E. Construction of a Double Transformer Substation B. Cost of losses

Adding this scenario is very important for serving the loads 1) Cost of no-load losses (NLLC)
larger than 1000 kVA. On the other hand, referring to the a) Cost of investment in generation and transmission
higher reliability of a double transformer substation, this type (NLLIC)
of substation is more employed recently
b) Cost of Energy Losses (NLLEC)
F. Classic Method for Selection of Substation Optimum 2) Cost of load losses (LLC)
Rating a) Cost of investment in generation and transmission
According to Tehran Distribution Company Methodology, (LLIC)
under a classic scenario, the rating of a distribution transformer b) Cost of Energy Losses (LLEC)
may be selected by [15]:
Equations 6 to 8 used for calculation of cost of losses.
Pmax LC = N LLC + LLC (6)
S = (4)
UF × PF N LLC = N LLIC + N LLEC (7)
In this scenario 0.9 is selected as the power factor (PF). LLC = LLIC + LLEC (8)
Transformer utilization factor (UF) is 0.85 for efficient
distribution transformers and 0.8 for the other distribution
transformers. For these two alternative transformers the total 3) Losses Investment Cost
owning cost is calculated. In this scenario the load growth, the
load curve, the harmonic contents, the thermal performance For 1 kW power losses in transformer, system operator
calculation and the lifetime calculation are overlooked. should invest more in generation, transmission and distribution
systems. This cost calculated by 9 and 10.
G. Final Decision making N LLIC = S I × N LL (9)
After analyzing 6 scenarios, the two best of each set are LLIC = PR F 2 × PUL 2 × S I × LL (10)
selected. The substation designer selects the best option out of
1 T PL y
the 12 alternatives. PUL =  (11)
T y =1 S nom
III. DISTRIBUTION SUBSTATIONS OWNING COST
TOC is the main parameter in optimum selection of 4) Cost of Energy losses
distribution transformer rating and efficiency. TOC is
calculated by [16]: Cost of energy losses in the yth year (LLECy) of transformer
installation can be evaluated through the following relation :
T OC = IC + LC + M C − S V (5)
 (1 + EIR )
y
The construction cost of the model distribution transformer y  8760 × N LL
only contributes to the first year expenses, while the cost of N LLEC = × EP0  (12)
 (1 + i )
y
 ET
energy losses and the maintenance costs will be considered on
an annual basis.  8760LL  PL y   (1 + EIR )
2 y

LLEC y =  EP0 × LF    (13)

 S nom   (1 + i )
y
A. Construction Cost of Substation  ET
The following pseudo code illustrates the modelling of
substation construction cost [16]. Loss factor (LF) -which is introduced in this paperis
If single transformer substation? determined by the following relation:
Is an overhead substation? 2
IC = TrC + OthC 1
8760
 S (t ) 
Is an indoor substation?
LF =
8760  
 PL y 
 dt (14)
1  
IC = TrC + OthC + LPS + BCC
If it is a double transformer substation? C. Maintenance cost
IC =TrC1 +TrC2 +OthC + LPS + BCC This cost is overlooked for compact substations. According
If it is prefabricated compact substation? to data provided by the electricity distribution company in
Tehran, this cost is 1% per year of the transformer purchase
Fig. 2. Pseudo code for construction cost price.
2016 1st International Conference on New Research Achievements in Electrical and Computer Engineering (ICNRAECE)

D. Salvage cost
Is equal with the revenue achieved by selling the
transformer at the distribution transformer replacement year.
This revenue is 30% of transformer purchase price. Of course,
the transfer of income to the first year, should be borne in mind
inflation and interest rates.
Fig. 4. Monthly peak Temperature curve
E. Time window (N)
TABLE II. CHARACTERISTICS OF USED TRANSFORMERS
Planning horizon for a distribution systems is 5 years. By
this value the transformer rating reaches its lower probable Snom (kVA) NLL (W) LL (W) TrC (k$) OthC (k$)
value. On the other hand if the planning horizon were 20 or 30 315 720 5400 6.17 4.35
years, the investment cost at the beginning year is high. This 400 850 6450 7.39 5.88
parameter is a control parameter that is under the control of 500 1000 7800 8.62 17.55
designer. The interest rate should be defined as the 90% of the
present value over the first 5 years window. 630 1200 9300 10.65 17.87
800 1450 11000 12.36 18.57
1
∞
1 1
= 1+ i =
TABLE III. CHARACTERISTICS OF COMPACT SUBSTATIONS

y =1 (1 + i )
y
1 i
(15)
1− Snom (kVA) NLL (W) LL (W) Substation Cost
1+ i (k$)
y =N 500 1000 7800 8.33
1 0.9
y =1 (1 + i ) y
=
i
(16) 630 1200 9300 10.34
800 1450 11000 12.05
i = N 10 − 1 (17)
To demonstrate the effectiveness of the proposed
IV. SIMULATIONS
method, two different case studies are presented in this section
This section presents the results of optimal distribution
transformer sizing using a comprehensive method. To model A. First example: small home load
the transformer load, this paper utilizes the results of load 90 residential load, 32 A, single phase, coincidence factor is
survey which is usually performed by distribution companies. 0.33 and 3 industrial load, 32 A, single phase, coincidence
The typical load characteristic of various types of customers factor is 0.6 and 4 public load, 32 A, three phase, coincidence
(residential, industrial, commercial, or other types), are derived factor is 0.7, the output is in table IV
on the basis of recorded data by installed data loggers. Load
growth is modeled by an S shape function [17]. To develop a
TABLE IV. OUTPUTS OF EXAMPLE 1
load growth curve, the designer uses on the field load growth
estimates for future years. For first example, the load growth Scenario Snom (kVA) TOC (k$) Benefit (k$) Benefit (%)
were 25 % in 5 years. The input parameters for the following 1 315 13.28 2.36 15.1
examples are as follow: 2 - - - -
3 315 35.56 -19.90 -127
TABLE I. INPUT PARAMETERS FOR COMING EXAMPLES 4 - - - -
5 200 & 500 50.82 -44.16 -282
Symbol Value Symbol Value
N 5 (year) SI 1.02 ($/W) 6 400 15.65 0 0
LPS 18.82 (k$) EP 0.03 ($/kWh)
BCC 6.11 (k$) EIR 15% In the above table, the 6th scenario is the reference scenario.
T 20 (year) ET 0.97 All of benefits are calculated with respect to it. The best
scenario, is the related to installation of an overhead 315 kVA
transformer. We can see that rating of the transformer selected
by the comprehensive method is smaller than the result of the
existing method. Due to a relatively low load growth, replacing
scenarios were not very useful. If the load growth were 40 % in
5 years. The outputs of example 1 is presented in table V.

Fig. 3. Monthly peak load curve

2016 1st International Conference on New Research Achievements in Electrical and Computer Engineering (ICNRAECE)

TABLE V. OUTPUTS OF EXAMPLE 1 WITH 40 % LOAD GROWTH presented. This method correctly and intelligently select the
Scenario Snom (kVA) TOC (k$) Benefit (k$) Benefit (%) distribution transformer power rating to increase the benefits
1 400 15.86 0 0
and to reduce the power system losses. An up to date algorithm
including a routine for distribution transformer replacement
2 315 to 400 14.02 1.84 11.6
at 10th option, is developed in this paper. If this idea is to be used for
3 500 38.95 -2.29 -145 the optimum selection of distribution transformers, it should be
4 - - - -
similar to [10] where the thermal performance and the lifetime
5 200 &500 59.95 -44.07 -277 calculations may be overlooked or similar to [16], smart
algorithms (rather than using very time consuming and
6 400 15.86 0 0
unreliable methods) are used. However, using this algorithm
besides the distribution transformer replacement algorithm over
It can be seen that with higher rate of load growth, the the planning horizon, has provided a high speed of calculation.
transformer replacement scenario is more feasible. In table VI
the outputs of example 1, is determined realizing a window of
10 year. It can be seen that if the time window were smaller, VI. REFERENCES
the transformer replacement scenario is more justifiable. [1] R. Targosz and F. V. Topalis, “Energy efficiency of distribution
transformers in Europe,” 9th Intern. Conf. Electrical and Power Quality
and Utilization, Barcelona, 2007, pp. 1-5.
TABLE VI. OUTPUTS OF EXAMPLE 1 WITH 10 YEARS TIME WINDOW [2] K. C. Schneider, and R. F. Hoad, “Initial transformer sizing for single-
phase residential load”, IEEE Trans. Power Delivery, vol. 7, pp. 2074-
Scenario Snom (kVA) TOC (k$) Benefit (k$) Benefit (%) 2081, Oct 1992.
1 400 20.93 0 0 [3] IEEE loss evaluation guide for power transformers and reactors,
2 315 to 400 23.76 -2.82 -13 IEEE/ANSI Std. C57.120-1991.
at 10th [4] P. S. Georgilakis, J. C. Olivares-Galvan, R. Escarela-Perez, et al.,”
3 500 42.49 -21.55 -103 Environmental cost of transformer losses for industrial and commercial
4 - - - - users of transformers”, North American Power Symposium (NAPS),
5 200 &500 64.30 -43.36 -207 Aug. 2011.
6 400 20.93 0 0 [5] IEEE guide for loading mineral-oil-immersed transformers, IEEE Std.
C57.91-1995.
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In this section the effect of load increase is investigated. 80 transformers in distribution company”, in Proc. 20th Iran Int. Power
System Conf., Tehran, Iran, 2005 (in persian)
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[7] E. I. Amoiralis, M. Tsili, A. G. Kladas, “Power transformer economic
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factor is 0.8. The available method (6th scenario) doesn’t ignore [8] J. Zhao-Xia, C. Xiao-Peng, “Optimization of distribution transformer
coefficient of coincidence, so the load is estimated to be higher capacity based on comprehensive economic perspective”, IEEE Power
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[10] E. I. Amoiralis, M. Tsili, P. S.Georgilakis, and A. G. Kladas, “Ant
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Electrical Power Quality and Utilities, Barcelona, Oct. 2007.
Scenario Snom (kVA) TOC (k$) Benefit (k$) Benefit (%)
[11] IEEE Guide for Loading Mineral Oil-Immersed Power Transformers,
1 - - - - ANSI/IEEE Standard C57.91-1995.
2 - - - - [12] Loading guide for oil-immersed power transformers, IEC 354, second
3 - - - - edition, 1991-09.
4 315 to 800 63.68 5.52 8
[13] IEEE Recommended Practice for Establishing Transformer Capability
5 315 & 630 69.21 0 0 When Supplying Nonsinusoidal Load Currents, ANSI/IEEE Standard
6 - - - - C57.110-1998
[14] Power transformers- Part 7: Loading guide for oil-immersed power
transformers, IEC 60076-7, 2005-12.
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of an 800 kVA and adding a 315 kVA transformer to it at 7th [15] Design guidelines and requirements in the distribution Company in
Tehran, ID number TEC / D / 02, reviewing two (in persian)
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[16] E. I. Amoiralis, P. S. Georgilakis, M. Tsili, A. G. Kladas, “Ant Colony
Optimisation solution to distribution transformer planning problem”, Int.
V. CONCLUSION Journal of Advanced Intelligence Paradigms, vol. 2, pp. 316-335, 2010.
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efficient construction of a new distribution substation is Dekker, Newyork, 2004.

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