A transformer that is too small overheats and ages fast; one that is too large costs more and wastes no-load losses every hour. Here is the standard approach.
Add the rated loads, then apply a diversity (demand) factor, because not everything runs at once. Typical factors: 0.6–0.8 for industrial plants, 0.4–0.6 for commercial buildings. Better still, use measured peak demand if the site already exists.
kVA = kW ÷ power factor. Use 0.85–0.9 for most industrial loads unless you know better.
Add 20–30% for future load. Oil-immersed transformers can run at full rating continuously, but running at 60–80% gives the best balance of losses and life.
Standard ratings: 100, 160, 200, 250, 315, 400, 500, 630, 800, 1,000, 1,250, 1,600, 2,000, 2,500 kVA.
See also 11 kV vs 33 kV transformers.
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