The 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.
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”.
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.