Since low-loss distribution transformers are more expensive than less-efficient transformers, it is critical to build the capacity of all stakeholders to accelerate positive transformation of the electricity sector in emerging markets.

Using the Total Cost of Ownership (TCO) approach, capacity-building programs using U4E’s TCO tool for distribution transformers, capacity building may for example include:

Utilities & Finance Ministries

Capacity building on the TCO tool for design engineers and finance departments in emerging markets with to the view to improve procurement policies and quality of components used in grids.

For public utilities, procurement is handled by the ministries of finance. Since electricity is subsidised, electricity losses burden governments’ budgets with avoidable, unnecessary spending. An estimate of the financial impact of low-loss distribution transformers on public finance should be conducted to demonstrate the necessity of changing public procurement criteria in favour of low-loss distribution transformers. GEAR can for example support utilities & finance ministries with capacity building on sustainable public procurement.

Improve refurbishment practices

Improper refurbishment of old distribution transformers lead to a degradation of the efficiency of  transformers.

GEAR seek to build the capacity of engineers and technicians on refurbishment best-practices, as well as promote performance-based contracting for refurbishment companies.

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