Investigating cost-benefit analysis for digital distribution transformers – Part II

Investigating cost-benefit analysis for digital distribution transformers – Part II

Vol. 8 issue 4

Installation of the monitoring system or adding digital features to the distribution transformer fleet may seem like an unnecessary cost. Still, if it is appropriately conducted, it can be very beneficial in terms of the transformer’s operation and cost reduction when looking at the transformer lifetime scale. This second part of the article focuses on the economic calculations to demonstrate how digitalization is cost beneficial and how it can extend the transformer’s lifetime. Sustainable transformer ratings are introduced.


Digitalization of the distribution transformers is beneficial in terms of transformer operation and long term cost reduction, although it is reluctantly adopted by users due to initial costs


  1. Economic Parameter Calculations
  2. Annual costs reduction benefits

There are three distinct regions in a transformer failure bathtub curve (Fig. 8):

  1. Infant mortality: indicated by a high failure rate in the first few years after manufacture, which decreases over time. These failures are generally attributed to inherent design defects or manufacturing errors.
  2. Random failures: indicated by a flat region (constant failure rate) over the age range in the middle of the expected design life, where random failures are expected throughout the population.
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