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The Importance of Efficient Procurement of Transformers for On-Time CBG Plant Delivery

Transfer procurement blog

Setting up a compressed biogas (CBG) plant is no easy task—multiple systems must work together seamlessly, and one of the most critical components is the transformer. These transformers are essential to maintaining consistent power and operational efficiency. In fact, high-efficiency transformers can reduce energy losses by up to 30%, resulting in substantial cost savings (United for Efficiency, 2017).

Recently, one of our clients faced a major challenge: the lead time for procuring a 220 kV transformer had stretched from 8 to 10 months! This extended timeline added immense pressure to their project planning. As with any major capital project, timely commissioning is crucial. Delays don’t just set you back—they can lead to significant financial losses and disrupt operations.

In this blog, we’ll dive into the critical role transformers play in plant operations, the risks associated with procurement delays, and key strategies for streamlining the procurement process. We’ll also share a success story of how Venwiz assisted an EPC company in procuring 30 transformers, without any delays—securing over 10 quotes within just two weeks!

Table of Contents

  1. Tips on How to Build an RFQ for Efficient Transformer Procurement
  2. Venwiz Success Story: How Venwiz Streamlined Transformer Procurement to Keep a CBG Project on Track 
  3. Conclusion

Tips on How to Build an RFQ for Efficient Transformer Procurement

Tips on How to Build an RFQ for Efficient Transformer Procurement

In a typical 500 TPD (tons per day) compressed biogas (CBG) plant, the power demands can be substantial, often requiring transformers rated at 50 MVA or higher. To ensure you select the most suitable vendor, it’s crucial that you draft a technically precise RFQ (Request for Quotation) for transformer procurement. Here are key considerations to keep in mind while drafting an RFQ:

1. Technical Specifications

When selecting a vendor for transformers, companies should ensure they provide clear and detailed technical specifications for the following key parameters:

  • Power Rating (MVA): Maximum power the transformer can handle, measured in megavolt-amperes (MVA).
  • Primary and Secondary Voltages: Input (primary) and output (secondary) voltage levels for compatibility with your system.
  • Frequency: Operating frequency of the power system, typically 50 Hz or 60 Hz.
  • Cooling Method: Type of cooling system provided (e.g., ONAN, ONAF, OFAF).
  • Insulation Level: Insulation requirements, including Basic Insulation Level (BIL) and Switching Impulse Level (SIL).
  • Impedance: Transformer impedance, which affects voltage regulation and fault levels.
  • Efficiency: Efficiency rating of the transformer, impacting operational costs and energy losses.
  • Winding Material: Material used for the windings, typically copper or aluminum.
  • Tap Changers: Presence and type of tap changers (e.g., OLTC, DETC) for voltage adjustment.
  • Short-Circuit Withstand Capability: Ability to withstand short-circuit conditions without damage.
  • Mounting Arrangement: Physical mounting requirements (e.g., pad-mounted, pole-mounted).

2. Types of Transformers

  • Oil-Filled Transformers: Choose vendors who supply transformers encased in a steel tank filled with oil for cooling and insulation, ensuring the temperature remains below 85°C. These are typically found in substations and power distribution areas.
  • Dry Type (Cast Resin) Transformers: Consider vendors that offer dry type transformers, which rely on air or gas for cooling. Ensure they provide both cast resin (CRT) and vacuum pressure impregnated (VPI) subtypes to meet your specific requirements.
  • Compact Substation Transformers: Opt for vendors that supply compact substation transformers, which integrate key components into a smaller footprint while effectively stepping down high-voltage electricity for distribution.

3. Installation Location

  • Outdoor Transformers: Look for vendors that offer transformers designed for external environments, equipped with durable, waterproof enclosures and natural cooling systems to manage heat, moisture, and dust effectively. Ensure they feature IP-rated enclosures (such as IP65 or IP66) for robust protection against dust and water.
  • Indoor Transformers: Select vendors that provide transformers suitable for controlled environments with stable temperatures and low moisture levels. Verify that these indoor transformers utilize appropriate cooling methods for such settings.

4. Safety Features

Transformers come with various safety features that need careful consideration when preparing your RFQ. Here are some includes: Buchholz Relay, Pressure Relief Devices, Temperature Monitoring, Grounding Systems, Enclosed Coils, Disconnect Switches, Overcurrent Protection.

When selecting a vendor for electrical transformers, clients should ensure that the vendor adheres to the comprehensive standards established by BIS, which address critical aspects such as design, manufacturing, testing, and operation. Key standards for transformers include:

  • IS 2026: Primary standard for power transformers in India.
  • IS 1180: Governs distribution transformers.
  • IS 2026-3: Outlines testing procedures to ensure quality and performance.
  • IS 11171: Covers specifications for dry powder type transformers.

5. Types of Testing Certifications

Vendors need to specify tests conducted, including:

  1. Measurement of winding resistance.
  2. Measurement of voltage ratio and phase displacement.
  3. Measurement of impedance voltage/short circuit impedance (principal tapping) and load loss.
  4. Measurement of no-load loss and current.
  5. Measurement of insulation resistance.
  6. Separate source AC withstand test.
  7. Induced overvoltage withstand test.
  8. Lightning impulse test online terminal.

6. Optimize Supply Chain and Logistics

  • Local Sourcing: Where possible, prefer vendors that source transformers or components from Indian manufacturers. This minimizes lead times, reduces logistics costs, and mitigates global supply chain risks.
  • Advanced Logistics Planning: Ensure that the vendor is capable of planning transportation well in advance, especially for large transformers. Proper planning should include considering transportation routes, permits, and obstacles for timely delivery to remote or challenging locations.

Some miscellaneous things you can specify in your RFQ are: Warranty, Delivery Period, Local Type Test Facility, Repair Services, Commissioning Supervision

Venwiz Success Story: How Venwiz Streamlined Transformer Procurement to Keep a CBG Project on Track 

An EPC firm that specialises in setting up Compressed Biogas (CBG) plants for energy giants like Reliance and IOCL, needed 30 transformers for their ongoing projects. The firm faced tight deadlines due to high project demands. To avoid costly delays, they required faster turnaround times (TAT) and lower procurement costs.

How Venwiz Accelerated the Process

Venwiz stepped in to streamline the procurement process. We used our in-house AI-enabled tools, curated a vendor list based on PQR and conducted in-depth technical and commercial assessments. Over 10 quotes were gathered, factoring in warranty terms, spare parts availability, and delivery schedules. We narrowed it down to three highly competitive vendors, with prices differing by no more than 15%. Through strategic discussions, Venwiz ensured the client’s requirements for quality, cost, and timely delivery were flawlessly met. 

Key Benefits

  • Achieved up to 12% cost savings compared to the client’s standard procurement process.
  • 10+ quotes for 30 transformers shared within two weeks.
  • Reduced vendor discovery timelines by 80%, keeping the project on track.
  • Improved technical team efficiency with a 60% reduction in man-hours, thanks to Venwiz’s SaaS tools.

Venwiz’s swift action not only saved the client time and money but also kept the project from facing disruptive delays.


Conclusion

Timely transformer procurement is crucial for maintaining operational efficiency and ensuring uninterrupted power flow in your CBG plant. Transformers play a vital role in voltage regulation and system protection, preventing surges and minimizing energy losses. Delays in procurement can result in extended downtime, cost overruns, and disruptions to project schedules. However, with strategic planning, vendor evaluation, and precise cost management, these risks can be mitigated.

At Venwiz, we optimize procurement workflows for CBG projects and beyond. Our platform enables efficient vendor discovery, facilitates comparative analysis of quotes, and supports rigorous timeline management to ensure project continuity.

Got an upcoming CBG project? Let us know your requirements at shubham.raj@venwiz.in

Register or log in to our platform for all your capex procurement requirements.

For further insights into the latest developments in the manufacturing sector, visit our LinkedIn page. 

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