HPS DOE 2016

Transformer Updates

Locations

Hammond Power Solutions is North America’s largest and

broadest manufacturer of dry-type transformers:

DOE 2016 Efficiency Levels

The DOE will raise the efficiency requirements of transformers

on January 1st, 2016.

• The major impact will be 3-Phase 600 volt class dry-type

– Losses will be reduced about 30%.

• Single phase 600 volt class will remain at TP1 levels.

• Medium voltage 3-Phase will increase by 2% to 24%.

DOE 2016 Efficiency Levels

Market Impacts:

• Estimated price increases are still difficult to

determine as designs and productions lines are

updated and material prices adjusted.

– Prices will be reduced from similar NEMA

Premium units which are currently 80%-110%

higher than TP1.

• Manufacturers must revise manufacturing,

designs and invest significant capital.

Efficiency Timeline

1992: DOE starts studies for efficiency.

1996: DOE publishes

Distribution Transformer -

efficiency standard for voluntary use.

2002: NEMA developed NEMA TP-1-2002: At this

point, NEMA’s work was only a guideline.

2005: The Energy Policy Act of 2005

(EPACT 2005) specified that all

low-voltage dry-type transformers

manufactured on or after Jan. 1, 2007 must be Class I

Efficiency Level as defined by NEMA in

TP-1-2002 a law.

2006: The EPA suspended the

Energy Star program for distribution

transformers because the

mandated TP1 models met the current criteria.

2007: DOE established TP1

values for most dry type, 600 volt class

distribution transformers

through 1000 kVA in its 10 CFR 431 Subpart K on Jan. 1, 2007. Canada

has similar C802.2 requirements.

Efficiency Timeline

2009: Environmental

groups filed lawsuit that EPACT

required the DOE to implement more efficient designs than TP1. The

Court required the DOE assess TP1 and increased if

needed.

2010: DOE established

efficiency for most oil and dry

transformers through 2500 kVA in its 10 CFR 431 Subpart K on Jan. 1, 2007. Canada

has similar SOR/94-651 requirements.

2011: NEMA announced the

Premium Efficiency mark on

transformers which were 30% more

efficient than NEMA TP-1

2011: The DOE proposed

rulemaking to review and amend

the current standards in effect

for distribution transformers.

2012: The DOE must provide a final rule by Dec. 1, 2012

on the 600 volt class efficiencies.

2016: U.S. DOE efficiency for 3-

phase 600V class increase by about 30% over current TP1. Smaller but

significant increases for

medium voltage dry and oil M.V. units

DOE 2016 Efficiencies

DOE Efficiencies for all Low-Voltage Dry-Type Distribution

Transformer Equipment Classes

Regulations.gov - Rule Document Page 10 of 191

http://www.regulations.gov/ 7/8/2013

Equip. Class 3 Equip. Class 4

Single Phase (No Change) Three Phase (28-34% less losses)

kVA TP1 Eff.

DOE 2016

Eff. kVA TP1 Eff.

DOE 2016

Eff.

15 97.7 97.7 15 97.0 97.89

25 98.0 98.0 30 97.5 98.23

37.5 98.2 98.2 45 97.7 98.4

50 98.3 98.3 75 98.0 98.6

75 98.5 98.5 112.5 98.2 98.74

100 98.6 98.6 150 98.3 98.83

167 98.7 98.7 225 98.5 98.94

250 98.8 98.8 300 98.6 99.02

333 98.9 98.9 500 98.7 99.14

750 98.8 99.23

1,000 98.9 99.28

DOE 2016 Efficiencies

30% 29%

30% 30% 30%

31%

29% 30%

34%

36%

35%

15 30 45 75 112.5 150 225 300 500 750 1,000

Change in Efficiency Change in Efficiency

kVA

While the changes look small, it’s like improving a car’s mileage by about 30%.

Low Voltage NEMA Premium

vs. DOE 2016

Cost/KW: $.12 35% load average per year

KVA TP1 Efficiency DOE 2016 Efficiency

TP1 Cost of Operation

DOE 2016 Cost of Operation

TP1- DOE 2016 Savings

15 97.00 97.89 $166 $116 $50

30 97.50 98.23 $276 $195 $81

45 97.70 98.40 $381 $265 $116

75 98.00 98.60 $552 $386 $166

112.5 98.20 98.74 $745 $522 $223

150 98.30 98.83 $938 $646 $292

225 98.50 98.94 $1,242 $877 $365

300 98.60 99.02 $1,545 $1,082 $463

500 98.70 99.14 $2,391 $1,582 $809

Medium Voltage Regulations

Medium-Voltage Dry-Type Distribution Transformers will also increase in efficiency by about 10-15%

Efficiency for Medium Voltage transformers are assigned by BIL and kVA, not by voltage.

Dry-Type, Medium Voltage, Single-Phase Dry-Type, Medium Voltage, Three-Phase

kVA

EC 5

Low BIL

EC 7

Med BIL

EC 9

High BIL

kVA

EC 6

Low BIL

EC 8

Med BIL

EC 10

High BIL

20-45kV 46-95kV >96kV 20-45kV 46-95kV >96kV

15 - 15 -

25 - 30 -

37.5 - 45 -

50 - 75 -

75 112.5 -

100 Virtual RU Virtual RU 150 -

167 225

250 300 Rep Unit Rep Unit

333 500

500 Virtual RU Virtual RU 750

667 Virtual RU 1000

833 1500 Rep Unit Rep Unit

2000 Rep Unit

2500

DL9 / 3

DL11 / 3

DL10 / 3

DL12 / 3

DL13 / 3

DL 9

D

L 1

0

DL 1

1

DL 1

2 D

L 1

3

Medium Voltage Regulations

20-45 kV BIL 46-95 kV BIL 96-150 kV BIL

kVA

DOE 2010

DOE 2016

Yearly Savings

DOE 2010

DOE 2016

Yearly Savings

DOE 2010

DOE 2016

Yearly Savings

15 97.50 97.50 $0 97.18 97.18 $0 - - -

30 97.90 97.90 $0 97.63 97.63 $0 - - -

45 98.10 98.10 $0 97.86 97.86 $0 - - -

75 98.33 98.33 $0 98.12 98.13 $0 - - -

112.5 98.49 98.52 $18 98.30 98.36 $6 - - -

150 98.60 98.65 $39 98.42 98.51 $19 - - -

225 98.73 98.82 $106 98.57 98.69 $67 98.53 98.57 $14

300 98.82 98.93 $173 98.67 98.81 $128 98.63 98.69 $40

500 98.96 99.09 $342 98.83 98.99 $287 98.80 98.89 $136

750 99.07 99.21 $552 98.95 99.12 $493 98.91 99.02 $285

1000 99.14 99.26 $631 99.03 99.20 $564 98.99 99.11 $355

1500 99.22 99.37 $1,183 99.12 99.30 $1,119 99.09 99.21 $706

2000 99.27 99.43 $1,682 99.18 99.36 $1,591 99.15 99.28 $1,087

2500 99.31 99.47 $2,102 99.23 99.41 $1,989 99.20 99.33 $1,359

DOE 10 CFR Part 431 Exceptions

• Drive Isolation Transformers (must meet C802.2 in Canada)

• Auto-Transformers

• Rectifier Transformers

• Sealed Transformers (Potted, type 4, 4X and 12)

• Tap range greater than 20%.

• Ferro-Resonant

• Impedance less than 1% or greater than 8%

• UPS transformers

• Welding Transformers

• Marine applications not connected to the Power Grid.

• Transformers exported outside of the U.S. or Canada.

• Installed as a component on machinery.

• Testing Transformer

• Not connected to the U.S. or Canadian power grid.

Common DOE 10

CFR Part 431

exceptions include:

DOE 2016 Questions

• What are the most common efficiency

exemptions?

– Non-Ventilated transformers including potted.

• Potted 15 kVA three phase transformers may be less than

ventilated DOE 2016 units although they won’t offer the same

efficiencies.

– Transformers being power solely from generator power, not from the

national power grid such as mobile equipment and plants.

– Drive isolation and rectifier applications.

Types of Losses

Load is important to determine efficiency and calculating losses. 600

Volt Class units are tested using a resistive 35% load with a sinusoidal

input at unity power factor. Medium voltage is tested at a 50% load.

No-load Losses (Core): Occur in

the core, are mainly caused by hysteresis

and eddy currents and are independent of

the load.

Load losses (Coil & I2R):

Occur in the coils from wire resist

vary by the load.

Transformer Core Losses

Efficiency standards are measured at

35% load for 600 volt class and 50% load

for medium voltage transformers, the

majority of the losses are in the core.

Core losses are more economical to

reduce than resistance losses in the

coils.

No-Load Loss and Load Loss tables

don’t exist within US or Canadian

standards to show compliance with a

particular CSL/TSL level; only minimum

efficiency level matters.

Transformer Core Losses

Like a wire conducting electricity, the core

conducts magnetic flux. Transformer cores are

constructed from low carbon silicon steels.

A steel laminated core carries magnetic flux

1500 times better than air.

When a magnetic flux flows in a transformer’s

steel core, two major types of losses occur in

the steel core.

• Eddy current losses

• Hysteresis losses

Transformer Core Losses

The efficiency of the magnetic core is affected

by:

• The shape and geometry

• The air gap in the magnetic circuit.

• The properties of the core material

(especially permeability and hysteresis).

• The operating temperature of the core.

• Whether the core is laminated and how thin

the laminations are to reduce eddy currents.

Hysteresis Losses

• Caused by the magnetization and demagnetization of the core from

sinusoidal voltage. Each time the magnetic field is reversed, a small amount of

energy is lost to hysteresis in the magnetic core.

– The smaller the core volume, the less losses.

– Hysteresis losses vary by unit volume of the core.

• Transformers are designed to operate at a particular supply frequency.

Lowering the frequency will result in increased hysteresis losses.

– 50 Hz Transformers are exempt from DOE regulations but cost more because of

larger cores.

– Hysteresis losses vary by the Volts/Frequency.

Eddy Current Losses

• Eddy Current Losses are caused by the flow of circulating currents

induced into the steel caused by the flow of the magnetic flux around the

core.

– The flux induces currents into the laminations.

– The core laminations are acting like a single loop of wire.

– Since the iron core is a good conductor, the eddy currents induced by a solid

iron core will be large.

• The thinner the lamination, the lower the eddy currents and the lower the

losses.

Core Design Techniques

High efficiency designs using better core designs require: • Extensive engineering knowledge and new manufacturing techniques.

• Expensive and sophisticated core cutting machines.

• Better grades of steel = Thinner and/or Grain Oriented.

• Modern and more complex core designs

Mitered Gapped Step Lap

Interleaved Wound Torroidal

Core Design Techniques

Thinner insulated

laminations reduce eddy

current losses.

The effect of laminations is to

confine eddy currents to highly elliptical paths that enclose little flux, and so reduce their

magnitude)

Core Design Techniques

Welding can disrupt the electro-magnetic properties of steel so cores are clamped with bolts, bands

and plates.

Cold rolled grain oriented steel arranges the

orientation of grain in ferromagnetic steel in the

direction of rolling to reduce iron losses.

Core Design Techniques

Larges losses occur in the transformer corners and center span.

• Flux flows along the direction of the grain orientation

• Interleaved laminations reduce flux leakage and iron losses.

• Mitered Corners reduce losses

Core Design Photos

Corners are mitered at

45 degrees.

Step-Lap laminations reduce in size to

simulate a round core

Core Design Photos

The following is an example of a fully mitered,

interleaved step-lapped core design using

grain oriented steel. This type of construction

is typical for large power transformers and

premium efficiency units.

Core Design Photos

• Wound, Mitered and Gapped cores provide efficiency gains.

Wound Core Designs Gapped Core

Design

Core Design Techniques

Mitered laminations are cut at 45o in the corners.

• Flux gets a smoother path in the direction of its flow; hence

• Wound cores provide similar benefits as mitered cores.

Core Design Concerns

Changing core design, materials, shape and their relation to the coil can affect other design parameters:

•Impedance

•Inrush upon energization

Knowledgeable engineering and

manufacturing will maintain parameters

such as NEMA ST-20.

Similar NEMA Premium units have

been utilized for several years without

issues.

DOE 2016 Questions

• Can I install current TP1 transformers after

January 1st, 2016?

– As long as manufactured to the current U.S.

DOE specifications

– Manufactured by December 31st, 2015.

– In the U.S. by December 31st, 2015.

It is “Grand Fathered” and can be installed after

January 1st, 2016.

DOE 2016 Questions

• Will weights and dimensions change with the

DOE 2016 designs?

– The units will weigh more, typically +10-20%.

– The units will be larger, typically 10-15% more

physical volume. How this affects the individual

dimensions of height, width and depth will vary

from manufacturer to manufacturer.

DOE 2016 Questions

• Should transformer efficiency be checked after

the transformer is installed?

– There is little or no benefit to measure efficiency in the field other

than to add cost to a project.

– Efficiency is measured per DOE at 35% load for 600V class and 50%

load for medium voltage using a sinusoidal load at unity power

factor.

– Efficiency levels in the field will be difficult to accurately compare to

the DOE levels.

DOE 2016 Questions

• Will impedance change? – Probably. On average it will go down slightly for 600 volt class units

due to the new construction techniques. The levels will still be in the

typical NEMA and ANSI ranges. There will be little change in

medium voltage units.

• Will Inrush change?

– Energization inrush will increase slightly for 600 volt class u nits due

to the new construction techniques. Properly applied, the levels will

still be within the range of typical circuit breakers and time delay

fuses. There will be little change in medium voltage units.

DOE 2016 Questions

Will current TP1 efficiency units be

available into Q4/2015 and Q1/2016?

• The supply will be hard to predict.

Many manufacturers will stop

production of these units well before

January 1st.

– Supply channel may be hesitant to stock

the current TP1 units if specifications are

largely updated to support the new

regulations.

– Manufacturers will establish cut-offs for

stock replenishment and custom orders

2-5 months before January 1st.

DOE 2016 Questions

When should specifications be updated?

• Caution for 600V class transformers on site

up to 1000 kVA after Nov. 1st, 2015

– Typical lead times* after release is 4-6 weeks.

• Caution for medium voltage oil or dry type

transformers up to 2500 kVA on site after

Nov. 1st, 2015.

– Typical lead times* after release is 6-20 weeks.

*Typical Lead Times may increase in Q4/2015 as a larger than

average number of projects are released to get units manufactured

before January 1st, 2016.

DOE 2016 Questions

What effect will the new efficiency levels have on

transformer cost?

• Demand for higher core steel grades may increase cost.

• Estimated price increases are still difficult to determine as

designs and productions lines are updated and material

prices adjust.

DOE 2016 Questions

How can I update my specification?

Remove efficiency references to TP1, TP2, TP3, NEMA Premium or CSL.

• TP1, TP2 and TP3 will be discontinued by NEMA

Replace these efficiency

requirements with:

Efficiency levels must meet the

new DOE 10 CFR Part 429 and 431

levels as of January 1st, 2016.

Additional Specification

Considerations

• IEEE 519 increasing from 5% to 8% Total Harmonic Distortion measured at the utility service entrance.

• This will increase the overall system THD.

• Local circuit’s THD may be significantly higher than 8%.

• More THD means more transformer heating.

Specify K-Rated

transformers (K=4 or 13).

Additional Specification

Considerations

• 2014 NEC Code Updates

• Inrush Concerns

• Voltage Regulation Concerns

Do not allow back feeding

or reverse feeding.

• 2014 NEC Code Updates

• Specify factory installed ground lugs.

Wires and grounding lugs cannot block

ventilation openings.

DOE 2016 Questions

Where can I go for more information on the DOE 2016

Regulations?

HPS has established information at:

www.hammondpowersolutions.com/our-products/doe-2016

This will be updated periodically throughout the year as

information becomes available.

Contact Information

Contact your HPS Regional Sales Manager or local

representative which can be found at:

Http://www.hammondpowersolutions.com/rep-locator/

Presenter’s Contact Information

Mike Van Gheem mvan@hammondpowersolutions.com

Important Dates

The following page highlights some key dates related to the

DOE 2016 Transition that we want you to use when planning

our joint business in the coming months.

We appreciate your support during this time of exciting

industry change!

Important Dates

• September 2015 Release of selected DOE 2016 product information

• September 30th, 2015 Final date to request a Stock Rotation/Return of TP1 Product (per HPS Policy)

• September 30th, 2015 Final date to release approval orders for TP1 MV (power) products that are engineered-to-order

• October 5th, 2015 DOE 2016 Product Launch

• October 14th, 2015 Final date for HPS to receive a previously approved Stock Rotation of TP1 Product (standard items only, and must be returned to a U.S. warehouse)

• October 16th, 2015 Final date to release approval orders for TP1 LV products that are engineered-to-order

• October 16th, 2015 Final date to cancel an order for any TP1 products (U.S. customers only)

• November 1st, 2015 All orders for TP1 products after are for immediate shipment only (no releases)

• November 2015 Initial shipment of DOE 2016 standard products

• December 11th, 2015 Final date to release factory shipment of all TP1 orders

DOE 2016 Efficiency Levels

HPS Impacts:

• Rather than using existing NEMA Premium style designs,

HPS is investing millions in new equipment, plants and

engineering to provide mutual success with our partners.

• Product lines will undergo a complete redesign:

– Updated enclosures

– Updated and new features and options

– Necessary supporting information

– Q3/2015 product availability

Strategy and Development

Marketing Excellence

Business and product

innovation

Sales Excellence

DOE 2016 Efficiency Levels

• Hammond Power Solutions Inc. announced that it has

entered into a joint venture with National Material to

manufacture transformer cores for the electrical transformer

industry.

• Under the joint venture agreement, HPS and NMLP will

share financial and technological resources with the intent to

construct and operate a world-class core manufacturing

facility.

Questions?