How to choose the most economical power transformer?

Imagine you're buying a car. One is cheap but guzzles fuel. Another is expensive but efficient. Over time, the fuel costs may outweigh the price difference.

That's exactly what loss capitalization does for power transformers.

Transformers have two main types of losses:

No-load losses (core losses) → Always happen when energized
Load losses (copper losses) → Increase with load (∝ I²)
These losses waste energy = money lost every day for 80–100 years.

So, instead of just looking at the purchase price, smart utilities and engineers evaluate:

Total Owning Cost =

Purchase Price + (A × No-load Losses) + (B × Load Losses)
Where:
A = Capitalization rate for no-load losses ($/W or €/W)
B = Capitalization rate for load losses ($/W or €/W)
These factors consider:
Energy price (kWh)
Load profile
Inflation & interest
Transformer lifespan

Why it matters:
The cheapest transformer on paper may be the most expensive over time.

Proper loss capitalization helps make decisions that save millions in operational costs — especially in large utilities and energy-intensive industries.

Kingrun Transformer Instrument Co.,Ltd.

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