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Comparing two 750 kVA transformers

Short answer

Transformer B costs Rs 20,810 less and has lower iron and copper losses (70 W and 1655 W at full load). At 50% loading, annual energy saving is 4238 kWh (Rs 31,782). Second transformer is worth purchasing.

The 750 kVA transformer (iron loss 1500 W and copper loss 11500 W) is estimated to cost approximately Rs. 7,21,577/00. An equivalent transformer of another manufacture is quoted at Rs 7,00,767. The iron loss of the second transformer are 1430 W and copper loss are 9845 W. Is it worth considering the purchase of second transformer instead? Assume per unit cost of electricity be Rs. 7.5.

Given:

TransformerCost (Rs)Iron lossCu loss (full load)
A (750 kVA)7,21,5771500 W11 500 W
B (750 kVA)7,00,7671430 W9845 W

Energy rate Rs 7.5/kWh. Assumption: the transformer is energised for the whole year (8760 h); copper loss depends on loading, so it is worked out for a typical average load of 50% and also for other loadings.

Saving in initial cost

Cost difference = 7,21,577 − 7,00,767 = Rs 20,810 (B cheaper)

Saving in losses with transformer B

Iron-loss difference   = 1500 − 1430  = 70 W
Copper-loss difference = 11 500 − 9845 = 1655 W (at full load)

At 50% average load, Cu loss difference = 0.5² × 1655 = 413.75 W.

Energy saved/yr = (70 + 413.75) × 8760 / 1000
                = 4237.7 kWh
Money saved/yr  = 4237.7 × 7.5 = Rs 31,782
Average loadLoss saving (W)Rs saved/yr
Iron only (no load)704,599
50%483.7531,782
75%1000.965,762
100%17251,13,333

Decision

Transformer B is both cheaper (by Rs 20,810) and has lower losses, so it saves money from the first day: there is no extra investment to pay back. Even at no load it saves Rs 4,599/yr, and at 50% load about Rs 31,782/yr. Over a 25-year life this is several lakh rupees.

Answer: Yes, the second transformer should be purchased (provided its quality, guarantee, impedance and after-sales service are equivalent).

✓ Answer checked by Claude Opus 5.5 (high effort)

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