
260 Introduction to Electrical Power and Power Electronics
If the equipment saves S
kW
in power loss and costs ΔP more, it will save money
over 30 years only if ΔP < S
kW
× PLCR. The case when ΔP = S
kW
× PLCR results
in breakeven. However, 30 years is too long for most managers who would generally
be interested in 1-kW loss saving advantage only if the additional capital cost ΔP <
⅓ S
kW
× PLCR.
Example 10.1
A 1000-kVA transformer is open for procurement. Vendor A offers 97% effi-
ciency at $90,000 price, and vendor B offers 98% efficiency at $100,000 price.
Determine the profitability of buying the high-efficiency transformer. Assume that
(1) quoted ef ...