Idle transformers eat up over 2,000 MW

The power loss on account of transformers (in static state) in the 11-Kv segment during distribution is over 2000 MW.

Mr Anil Aggarwal, President, Indian Transformer Manufacturers Association, told Business Line that there were over five million transformers in the circuit, which in idle state (no load) consume over 40 watts each.

While the precise number of transformers online was not available, a preliminary estimate of the 11-Kv segment alone indicated that 70 per cent of the transformers were not of the star ratings specified by the Government. No load loss is continuous static loss.

Overall, the aggregate technical and commercial losses in the power distribution sector of the country is Rs 80,000 crore annually.

The Bureau of Energy Efficiency (BEE) has come out with the star labelling programme, which rate transformers according to efficiency norms.

“The transformer industry as such is the transition phase and we need to gear up to the BEE norms, which talks of reducing losses or more efficient transformers to reduce the carbon footprint,” he said.

Pointing to the technical and commercial losses, Mr Aggarwal said a mega watt saved is equal to 1.25 MW generated, besides investment and fuel required.

CONCERNS

A major issue confronting the industry is import of second quality cold rolled grain oriented (CRGO) silicon steel laminations comprising of seconds quality. This is the main raw material in transformer manufacturing, which comes under the open general licence.

CRGO is the material by which the magnetic circuit of the transformer is formed.

Mr Aggarwal said defective and second quality CRGO usage led to failure in operation and losses.

About 90 per cent of the transformer industry is in the unorganised sector and predominantly cater to the 11-Kv segment.

The organised players are mainly in the 132 Kv and above voltage range.

The 11 Kv demand is primarily addressed by the small-scale sector, where demand from discoms is huge and competition intense and use of CRGO seconds does lower input cost.

CRGO steel is not made in India.

On July 21, the Steel Ministry imposed a ban on CRGO seconds import, effective this December 21. This will definitely help produce quality products and reduce losses. As on date transformer makers are only allowed to make products that adhere to the star ratings, he said.

MARKET

The domestic transformer market is around Rs 12,000 crore. About 30 per cent form exports that go to Africa, the West Asia and some Asian countries.

With one lakh MW capacity addition envisaged in the XII Five Year Plan, the transformer makers see 15-20 per cent growth during the period.

Further, about five lakh transformers installed during the VII Plan period would also come up for replacement.

COMMENT NOW