Life Cycle Assessment and Capitalized Cost of Transformer Overload: A Multi-Regional Study in Ecuador

This study presents an integrated thermo-economic framework for evaluating the impact of daily overload on the aging and cost performance of oil-immersed distribution transformers. The methodology combines international transformer thermal aging models, widely accepted in transformer loading guides such as those established by IEEE and IEC, with an equivalent annual cost (EAC) model, enabling a unified assessment of insulation degradation and operational expenditures. Using a residential load profile with 15 min resolution and climate data from three Ecuadorian regions (Quito, Guayaquil, and the Amazon), we analyze the influence of varying overload levels, peak durations, cooling methods Oil Natural Air Natural (ONAN), Oil Natural Air Forced (ONAF), and Oil Forced Air Forced (OFAF), and installation environments (indoor/outdoor) on transformer lifetime and ownership costs. Parametric simulations reveal that ambient temperature is the dominant factor in thermal degradation, with Guayaquil showing service life reductions of up to 70% compared to Quito under identical loading conditions. While larger transformers with forced cooling exhibit enhanced thermal resilience, the economic performance deteriorates non-linearly beyond 120–130% loading due to compounding losses and replacement costs. The results demonstrate that (i) overload tolerance is climate dependent, (ii) indoor installations incur systematic thermal penalties, and (iii) the IEC and IEEE models yield similar outcomes under moderate conditions but diverge under severe stress. The proposed approach provides utilities with a robust decision-support tool to optimize transformer loading strategies, replacement planning, and cooling system upgrades in geographically diverse power systems.