Electrical energy distribution requires cables and power transformers, implying three types of energy losses: heat in the conductor by the Joule effect; energy dispersed in magnetic fields in transformers; and energy absorption in insulating material by dielectric effect. Joule effect losses in cables may account for 2.5% and transformers losses range from 1 to 2%.

Final electrical energy consumers are in majority of industry motors, ranging up to 70% of electricity demand. Understanding the influence of basic electricity parameters delivered to consumers can help to figure out what are the best opportunities for energy efficiency.

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