February 8, 2002

Energy Efficiency in Transmission and Distribution

The ultimate scope for saving energy in the EU through the use of energy efficient distribution transformers is approximately 22TWh/year. Despite the efficiency of individual units, up to 2% of total power generated is estimated to be lost in distribution transformers, nearly one-third of overall losses from the system.

This is comparable in scope with the energy savings potential estimated for electric motors and domestic appliances. It is equivalent to the annual power consumption of over 5.1 million homes, or the electricity produced by three of the largest coal-burning power stations in Europe.

Because of the long life span of distribution transformers, ultimate market penetration will only be achieved gradually. However, we estimate that energy-efficient units could contribute 7.3TWh of savings by 2010, representing over 1% of the European commitment to reducing carbon emissions.

Europe has an urgent need to develop a strategy on existing and future global warming actions. As far as we have been able to ascertain, no European country has yet developed targets for the global warming savings potential which could result from distribution transformer programs, nor has a formal estimate been made for the EU or Europe as a whole. Europe has considerable potential to offer world-wide in transformer technology and experience.

However, national governments and utilities appear to lag behind the US in terms of programs and initiatives to encourage energy efficiency. There are no initiatives comparable to the US DOE/EPA programs on utility commitments, information and software dissemination. This is despite the fact that most of the major European countries have a very poor position on energy self-sufficiency.

There is already considerable R&D and promotional effort within Europe aimed at reducing losses in small transformers, e.g. for domestic and office equipment, and some IEA/OECD work has been undertaken. Initiatives have included campaigns to urge consumers to switch off appliances, and the use of more efficient core materials.

This could assist in focusing attention on the equally significant target of distribution transformers. It is apparent that both utilities and private sector purchasers are difficult to influence. The transformer market is extremely competitive, and efforts to improve energy efficiency in the past have had limited success. However, the sector involves a limited number of professional buyers, already reasonably aware of the arguments for energy efficiency, and with well-established techniques for evaluating transformer performance.

They are therefore likely to be receptive to rational arguments, provided that benefits are clearly demonstrated We believe that distribution transformers represent an important focus for energy efficiency initiatives within the EU and a worth-while area for R&D, demonstration and promotional effort.

We therefore recommend the following:

• the potential for reducing losses from distribution transformers should be considered as one element of EU and national strategies on energy efficiency, global warming, and environmental impact
• an action plan should be developed to achieve these goals. The strategy and action plan need to be carefully coordinated, technically sound, and carry partners from all levels in the supply chain.