What Is Loss Evaluation / Capitalisation?
Quick answer — Loss evaluation (loss capitalization) converts the transformer no-load and load losses into a monetary value over the life, so bids can be compared on the total cost of ownership, not just the price. A loss-evaluation factor (in $/watt) is set for the no-load and load loss, and each unit is priced as the purchase price plus the capitalised value of its losses. A lower-loss unit can justify a higher price.
What is transformer loss evaluation?
The idea
Because the losses cost energy every year of the life, a buyer sets a value (e.g. $/kW for the no-load and load loss) and adds the capitalised loss to the purchase price for a fair comparison.
How it is used
Set the evaluation factors for the no-load and load loss (they differ), compute the loss value for each bid, and compare the total.
Why it matters
It rewards a lower-loss, higher-efficiency transformer, which often pays for itself even if the purchase price is higher.
References & standards
- IEC 60076-1
- IEEE C57.12.00
Related
Related manufacturers
Prolec GE (GE Vernova) · Prolec GE Waukesha · Hitachi Energy USA · Siemens Energy · Eaton · Virginia Transformer Corp
Related components
Technical content is prepared from engineering references, standards frameworks, manufacturer documentation and industry sources. Contractual or compliance decisions should refer to current official standards. TransformerPath Technical Editorial.
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