Efficient Strategy for Distribution Transformer Replacement: A Study on Replacement Methods in Power Systems

A dependable and efficient electric power distribution system is increasingly required due to growing industrial and population demand. Many distribution transformers currently in use are outdated, which increases operating expenses and reduces efficiency. This study examines the issue of determining the most cost-effective time to replace aging distribution transformers to optimize operational expenses and enhance service performance. The purpose of this study is to calculate the annual operating costs of dis-tribution transformers at PT PLN (Persero) Makassar Branch and to identify the optimal replacement time to support more effective decision-making. Using an economic feasibility analysis based on the annuity method and linear regression, this study compares the annual operating costs of old transformers with those of new ones. The findings indicate that the annual cost of old transformers is higher than that of new ones, suggesting that replacing old transformers is more economical. The results show that operating expenses can be reduced and distribution efficiency improved through a systematic transformer replace-ment approach. Based on economic engineering analysis, this study provides a practical and relevant model for transformer replacement decision-making that can assist asset management and investment planning in the power industry.