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Aligning Sustainable Goals, Financial Benefits, and Quality in Distribution Transformers

This project explores investment proposals for distribution transformers (DTs) used in Liander's energy grid in the Netherlands. With 33,000 DTs operating sustainably, the goal is to align the interests of stakeholders in increasing circularity, profitability, and safety. Three scenarios were proposed: replacing older DTs with sustainable models, utilizing On Load Tap Changers, and enhancing stakeholder collaboration to meet EU sustainability demands. The ultimate aim is to improve sustainability, increase financial returns, and maintain high-quality standards while reducing risks for the future.

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Aligning Sustainable Goals, Financial Benefits, and Quality in Distribution Transformers

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  1. WCM Summer School 2014 Group 8 Distribution Transformers: Aligningsustainable goals, financial benefits & quality

  2. Keyfigures • Case company: Liander • Lianderdistributes energy through the Liandergridtocustomers in the Netherlands • Case topic: Distribution Transformers (DT) • DT transformselectrical power between different voltage levels • Medium Voltage (20kV/10kV) into Low Voltage (690V/400V) • 33.000 DTs in the Liandergrid • Highlyreliable (7 failures / year / grid) • Average life span: 40 years

  3. Problem statement • Goal: Make investment proposalsfordistributiontransformerstoprovide the stakeholders of Lianderwith the highest (circular) value. • Problem: Maininterests of key stakeholders seemtobeunaligned: • Increasesustainability (circularity) • Increase Financial Profit • MaintainQuality & Safety • Is itpossibletoalign the interests of all stakeholders? YES!

  4. Scenarios

  5. 1: Current policy: ReplaceDTsplacedprior to 1970 withnewer,more sustainableDTs • Keyelements • Significant reduction in energy losses (sustainability) • ReuseexistingDTs (sustainability, cost-efficient) • Cost-efficient: Averageannual return over totaldepreciationperiod (40 years): 16% • Saving CO2 of 180.000 kg over total lifespan • Proven technologywith long life cycle (higherquality) • Implementation: • Currently ±450 replacements/year • Continue thisprocess

  6. 2: ReplaceDTsplaced prior to 1970 withnew DTswith On Load Tap Changer (OLTC) • Keyelements • Preventing a replacement wave (risk reduction) • Withstandsfuture changes to the grid (risk reduction) • Significant reduction in energy losses (sustainability)Reductionoutweighs energy forreplacing & 95% of material of old DT is circular • Averageannual return over totaldepreciationperiod (40 years): 7,76% • Saving CO2 of 250.000 kg over total lifespan • Initial investment outweighsfuturemodificationcosts (costefficient) • Proven technologywith long life cycle(higherquality) • Implementation: • Tender for new DTswith OLTC • After delivery, gradually start placing the new DTs.

  7. 3: Alignall stakeholders in the supplychain toreach EU demands most efficiently • Motive: CommissionRegulators (EU etc.) demand more sustainable energy distribution (Ecodesign DB – 2009/125/EC) • Keyelements • Reach the EU sustainability goal bydecreasing the CO2-emission of DTswithcombined effort of all stakeholders in the supply chain • Design for Maintenance & Recycling • Modernization of grid system, such as DTswithOn Load Tap Changers • Embedsustainability goals in tendering procedures. • Reduce costs in long term for all stakeholders • Positive impact to the customers. • Implementation: Gather most important stakeholders (Regulators, Energy Productionand Distribution Companies, Material, Component and System Suppliers) todetermine the strategyforfulfilling the EU goals.

  8. Conclusion • Aligning interest of all stakeholders: • Improvingsustainability, • Increasing Profit, • Maintaining high quality, and • Managing risks (futureproof).

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