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ABB Brazil JCM A-1 Power Products Division Power Transformers © ABB Group 14 de abril de 2015 | Slide 1 ABB Brasil Power Products Division Dr. José Carlos Mendes Gte Tecnologia Transmissão e Produtos de Potência Gte Desenvolvimento & Engenharia Engenheiro Corporativo Executivo Global ABB Asea Brown Boveri Divisão de Produtos de Potência Transformadores de Potência São Paulo, SP - Brasil email: [email protected] tel: + 55 11 2464 8410 cel: + 55 11 9 8354 5358 + 55 11 9 8112 7575 SANTIAGO CL Jornadas Técnicas 2015 2015Abr14&15 Power Transformers: Life Cycle and Operational Cost Optimization – Electrical Sector Deregulation and Impacts

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ABB Brazil JCM A-1Power Products Division

Power Transformers© ABB Group14 de abril de 2015 | Slide 1

ABB BrasilPower Products Division

Dr. José Carlos MendesGte Tecnologia Transmissão e Produtos de PotênciaGte Desenvolvimento & EngenhariaEngenheiro Corporativo Executivo Global

ABB Asea Brown BoveriDivisão de Produtos de PotênciaTransformadores de PotênciaSão Paulo, SP - Brasil

email: [email protected]: + 55 11 2464 8410cel: + 55 11 9 8354 5358

+ 55 11 9 8112 7575

SANTIAGO CLJornadas Técnicas 2015

2015Abr14&15

Power Transformers:Life Cycle and Operational Cost Optimization –

Electrical Sector Deregulation and Impacts

ABB Brazil JCM A-2Power Products Division

Power Transformers© ABB Group14 de abril de 2015 | Slide 2

Guarulhos, São Paulo - BR

ABB BrazilPower Products Division

Power Transformers

Blumenau, SC - BR

n PPTR Power Transformersl power transformers up to 765kVl shunt reactors up to 765kVl heavy current industrial transformersl service (Eng Solution, Factory and Site Repairs,

Monitoring Systems, TrServices)l insulation componentsl transformer components (Bushings, Tap

Changers, etc)n PPMV Medium Voltage, PPHV High Voltage

PPTR Distribution Transformers

ABB Brasil Power Products DivisionPower and Distribution Transformers

ABB Brazil JCM A-3Power Products Division

Power Transformers© ABB Group14 de abril de 2015 | Slide 3

ContentContent

Content

q introduction§ buying by performance to a long life§ useful life and maintenance

q life cycle optimization§ overall costs§ influence on design§ influence on long-term operation

q deregulation of electric power industry§ influence for customers§ influence for manufacturers§ influence on operation§ influence on reliability§ influence on expected life

ContextRenewables Energy

ABB Brazil JCM A-4Power Products Division

Power Transformers© ABB Group14 de abril de 2015 | Slide 4

Power TransformersLife Cycle Optimization

ABB Brazil JCM A-5Power Products Division

Power Transformers© ABB Group14 de abril de 2015 | Slide 5

USD$kVA x Useful Life x Overloading Factor

Capital Cost:n purchasen transportn installation

Operation Cost:n losses (noLoad,

Load, Auxiliar)n maintenancen insurance premiumn repairsn performance

End of Life Cost:n replacementn transfern refurbishment

NPV, Total Cost / Life Cycle $ = $1+$2+$3

$1

$2

$3

Warranty of Useful Life Garantida, year

Life Cycle, years

Power TransformersLife Cycle and Global Evaluation of Alternatives

ABB Brazil JCM A-6Power Products Division

Power Transformers© ABB Group14 de abril de 2015 | Slide 6

Transformer§ core§ windings§ connections§ tank§ expansion tank§ accessoriesØ bushingsØ tap-changersØ radiatorsØ motor-fansØ thermometers, level indicators,

Buchholz relay, pressure relief valve,pressure relay, air breathers, etc

Ø bushing current transformers BCTsØ surge arrestersØ command, control and protectionsØ sensors and monitoring system

Power Transformer

Power TransformersLife Cycle and Global Evaluation of Alternatives

ABB Brazil JCM A-7Power Products Division

Power Transformers© ABB Group14 de abril de 2015 | Slide 7

Economic environment can affect power transformers design andperformance:q there are now more strong temptations to save active material

q there are now more strong temptations to go closer to mechanical limits

q present tenders comparison process are weak to compare performance

q present tenders comparison process are weak to compare life cycle overallcosts

Industry Standards to check, certify and qualify performance, strength,useful life and integrity of Power Transformers:q based on application of existing standards, as example IEC60076 series and IEEE

q implementation of manufacturer procurement/qualification process

q implementation of Design Review to certify design

q implementation of Extensive Test program to qualify prototypes of a serie onf units

q implementation of endurancement tests for transformers accessories

q long time warranty requirements (> 5 years)

Power TransformersLife Cycle and Global Evaluation of Alternatives

ABB Brazil JCM A-8Power Products Division

Power Transformers© ABB Group14 de abril de 2015 | Slide 8

Deregulation of Electrical Industry

q electrical system industry was working rather well up to the mid 80ies, but:

q all actors wanted a change:§ Rational - Interconnections through countries/states in EU and US§ Political - Competition in all public sectors was a motto

Competition also in old infra- structure areas

q results:§ From governmental bodies to profit making companies§ Unbundling of Power – Transmission – Distribution§ Difficulties to get a collected responsibility§ A gradually change from long term commitments to short sighted horizons§ Fluctuations in electrical prices for all consumers

Power TransformersLife Cycle and Global Evaluation of Alternatives

ABB Brazil JCM A-9Power Products Division

Power Transformers© ABB Group14 de abril de 2015 | Slide 9

Purchaser drives standards lower to reduce costs – Why?

§ key people have personal targets based on financial performance, project budgets

§ engineering staff has been reduced to the extent that relevant experience has almostdisappeared

§ inexperienced engineers may feel pressurised into supporting or making baddecisions

Power TransformersLife Cycle and Global Evaluation of Alternatives

Overall Consequential Results

ABB Brazil JCM A-10Power Products Division

Power Transformers© ABB Group14 de abril de 2015 | Slide 10

q Decisions made in the procurement process determine the future reliability of the

transformer. Skills, Knowledge ?

q What is the risk?§ transformers are supplied that are not fit for purpose!§ long term reliability of whole family groups will be compromised

q Background§ transformer prices/costs have risen sharply§ lead times are pushing out to three years or more§ but, procurement is being driven by cash conscious asset managers, or even worse,

non or less technical procurement people§ this might lead to a pressure to cut corners to reduce costs through ignorance or lack of

competence

Power TransformersLife Cycle and Global Evaluation of Alternatives

Overall Consequential Results

ABB Brazil JCM A-11Power Products Division

Power Transformers© ABB Group14 de abril de 2015 | Slide 11

q How has this developed?

§ Reduction in technical expertise due to privatisation and regulatory driven costpressures

§ Senior utility managers are focused on cost and not the technical aspects

§ Short sight horizons

Power TransformersLife Cycle and Global Evaluation of Alternatives

Overall Consequential Results

ABB Brazil JCM A-12Power Products Division

Power Transformers© ABB Group14 de abril de 2015 | Slide 12

q What do we need to do?????§ Stop the problem at source

q How do we do that?§ Educate senior management of the importance of the key decision points in the

procurement process§ Raise the profile of these key steps

§ Specification

§ Design review of overall technology used in the order, consistency, experience,track records

§ The importance of correct and accurate testing

Power TransformersLife Cycle and Global Evaluation of Alternatives

Overall Consequential Results

ABB Brazil JCM A-13Power Products Division

Power Transformers© ABB Group14 de abril de 2015 | Slide 13

q Power Transformers are known as very Reliable Products

q We are going through the biggest Market change since ever

q Will the Reliability numbers stay the same ?

Power TransformersLife Cycle and Global Evaluation of Alternatives

Overall Consequential Results