March 31, 2023
IT IS IMPORTANT TO KEEP TOTAL CABLE LOSS AT A MINIMUM!
When choosing a cable, whether it’s copper, aluminum, or even gold — what matters is good conductivity.
Copper has 66% higher conductivity compared to aluminum.
A 100 mm² aluminum cable provides the same conductivity as a 60 mm² copper cable.
However, copper costs 5–6 times more than aluminum for the same performance.
We are sharing this information to help our investors make the right decisions based on scientific facts.
Recently, some investors have become more careful about the type of underground cables used.
Some insist: “Our cables must be copper.”
But we should ask — why?
All metals such as copper, aluminum, and iron have increased sharply in price.
As of today, the London Metal Exchange (LME) shows:
Copper → 10,500 USD/ton
Aluminum → 3,500 USD/ton
That’s a 3 to 1 price ratio.
Let’s compare conductivity and cost:
60 mm² copper cable
Weight: 0.60 cm² × 8.96 g/cm³ × 100 cm = 537 g/m
Cost: 0.537 kg × 10.5 USD/kg = 5.63 USD/m
100 mm² aluminum cable
Weight: 1 cm² × 2.70 g/cm³ × 100 cm = 270 g/m
Cost: 0.270 kg × 3.5 USD/kg = 0.94 USD/m
(These are only metal costs. Total cable cost can be 2–3 times higher.)
So, is it right to pay 6 times more for the same performance?
WHAT SHOULD BE THE CORRECT APPROACH?
The project design should ensure AC cable losses below 2%, and cable type and size should be selected accordingly.
The EPC company can use copper, aluminum, or even gold —
what matters is the conductivity.
If a copper cable supplier is cheaper than aluminum, ask why!
Request their project details and cable sizing calculations.
Ask how many meters of cable and where it’s planned to be used.
A 50 kVA system produces at least 700,000 kWh per year.
Even 1% loss means 7,000 kWh of wasted energy.
At 0.15 USD/kWh, that’s 1,050 USD loss per year.
OUR RECOMMENDATION
Don’t spend unnecessary money on cables.
Use copper only if the route requires it; otherwise, it’s wasteful.
Cable size and correction factors matter.
Make sure your consultants truly understand electrical design.