This is a real-life example of a detailed analysis for the least-cost choice of a transformer. It shows how the higher price of a facility can be traded against its operational cost over its life span. The example considers two offers for transformers. The first transformer offer is cheaper but it has higher losses, and slightly different payment conditions. The evaluation considers the overall cost of each alternative, its cash price plus its discounted cost of losses.

Inspec keywords: power transformers

Other keywords: transformer; operational cost; financial evaluation

Subjects: Transformers and reactors