A GROWING CONCERN FOR CORPORATE RISK MANAGERS AND INSURANCE COMPANIES
Corporate Risk Managers and Insurers consider Transformers as the most critical equipment inside plants because:
- Transformers are critical elements of the electricity network;
- There is a large quantity of oil in contact with high voltage elements
- Transformer International Norms are weak;
- Decline of the new transformer quality;
- Extensive use of transformers (age and overload);
- Reduction of investment programs.
DAMAGE COST OF TRANSFORMER EXPLOSION AND FIRE
The cost to replace a transformer unit is several million dollars (USD) and the cost of the outage in the tens of millions (USD) with potential to reach hundreds of millions (USD). Transformer explosions and fire result in: lost income, purchase of high-priced replacement power, replacement of transformers and surrounding equipment, polluting the environment and negative public relations, etc.
The damage caused depends on the transformer location:
- Power plant incidents result in very high loss of revenue and can lead to company bankruptcies if not insured. For insurers, the projected cost reference can approach USD 500,000 per MVA.
- Transmission substation incidents can result in the complete blackout of a region or a country. Several well-known cases have been recorded recently (USA, UK, Italy, Spain, etc.).
- Distribution transformer explosions in urban areas can have disastrous financial consequences in related pollution and litigation costs.
An estimation of the lost electricity production and distribution was made on the basis of the following electricity statistics found on the Energy Information Agency (EIA) Website:
- US Average Wholesale price of electricity ≈ USD 35/MWh
- US Average Retail price of electricity ≈ USD 72/MWh
- US Average per capita consumption of electricity ≈ 10 MWh
Damage and Production losses provoked by a transformer explosion and fire in power plants were estimated at 0.5 MUSD/MW
- Complete Site Destruction:
Average construction cost of a power plant ≈ USD 0.6 M/MW.
- Partial damage:
Transformer replacement cost is a function of the power rate.
Equipment and other related costs ≈ 2.5 x the transformer cost
PURCHASING THE TRANSFORMER PROTECTOR
The TRANSFORMER PROTECTOR Fast Depressurization System comes with a liability insurance policy with coverage up to 15 million EUR per occurrence should an incident occur.
Equipping your transformers with the TRANSFORMER PROTECTOR:
- Decreases the risk to surrounding equipment and buildings.
- Enables the quick internal repair of the transformer and sharply reduces plant outages.
- Leaves the environment unharmed.