DEMAND - SIDE
Since low-loss DTs are more expensive than less-efficient transformers, it is critical to build the capacity of decision-makers regarding their economic advantages. Using the Total Cost of Ownership (TCO) approach, capacity-building programs using U4E’s TCO tool for DTs should be implemented for the following targets:
Education campaign and distribution of the TCO tool for design engineers and finance departments to provide evidence for them to change their procurement policies.
For public utilities, procurement is handled by the ministries of finance. Since electricity is subsidized, electricity losses burden governments’ budgets with avoidable, unnecessary spending. An estimate of the financial impact of low-loss DTs on public finance should be conducted to demonstrate the necessity of changing public procurement criteria in favour of low-loss DTs. The program’s intervention will follow the guidelines of U4E on sustainable public procurement.
Refurbishment of old DTs is a common practice to delay the new purchase. Experience proves that this is not a sound financial policy, since it leads to a degradation of the efficiency of the transformers. The program’s intervention will seek to build the capacity of engineers and technicians on refurbishment best-practices, as well as promote performance-based contracting for refurbishment companies.