The Transformer Problem

Transformer Problem Veracity Connect WillisThe consequences of any transformer failure are important, from a 20-minute outage, to a black-out of several days, resulting in hundreds or thousands of customers in the dark and significant loss revenue.

Transformers are the essential links between power generation, transmission and distribution systems.

Electric Grid Power Texas Alliance EnergyElectric Grid Representation by Texas Alliance of Energy Producers

According to Willis North America, “transformers have for decades been ranked in the top five by equipment insurers in terms of claims”. The U.S. Department of Energy states that “the average age of installed Large Power Transformers (LPTs) in the U.S. is approximately 38 to 40 years”.

Power Transformer Failure CGRE Veracity ConnectUtilities have to deal with high pressure. Deregulation, increasing demand for electricity and shortage of skilled workers have prevented utilities to invest in capital infrastructure.

Prices of the main materials, copper and steel, have skyrocketed. The price of transformers has doubled. “A large transformer that cost $500,000 in 1960, now has a replacement cost of about $4,000,000.” “Projections of capital required to maintain reliable service across the system are simply beyond the financial capacity of many of the relatively new transmission and distribution (T&D) companies.” (Willis North America). Also, the average lead time for a new unit is …750 days.

This is why Veracity Asset Management Group has designed Veracity Connect, a critical spares management solution. Veracity Connect connects utilities, cooperatives, OEMs and leading transformer brokers, to leverage a pool of available critical spares. Utilities can quickly locate matching spare transformers and capital equipment across North America and take advantage of economies of scale.

Veracity Connect, collaborative platformLearn more at Contact us today at 866-694-1252 or to become a Veracity Connect member.

3 thoughts on “The Transformer Problem

  1. Pingback: Transformers: An Essential Link of the Electrical Grid | Veracity Asset Management Group

  2. Pingback: High-Impact, Low-Frequency Event Risk to the North American Bulk Power System | Veracity Asset Management Group

  3. Pingback: The 12 Blog Posts of 2014! | Veracity Asset Management Group

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