There may be another problem; switching transients that easily kill an SPS.
"In the outskirts of the plant" is a combination of words that may indicate a possible problem. You never can tell what else will be connected to that 208/120 V, I guess there is one or two outlets as well. And I have seen such outlets being used for angle grinders, little welders and whatever. They are being run until a fuse blows or a magnetic trips and then, you have a lot of stored magnetic energy (in the transformer core) looking for somewhere to go. Any SPS nearby is the most likely victim and if the transformer energy is large, which it is when the fuse blows, then a standard SPS can/will get hurt. Been there, seen that.
If this is the reason for the CVT spec, I would not let it out. But, I do not like the additional power consumed, either. So I would either make sure that there are no outlets for any temporary tools (they will get connected non-the-less) or put in a sturdy MOV - or a CVT that is being switched in only when that backup thing is in use. That won't reduce the installation cost, but it will certainly reduce the operating cost, which over the years will be higher than the purchase cost.
There might be some concern with the longevity of the MOV. But there are good design aids that help. If the number of transients are known (very few, usually) and the energy in the transient is known (cannot be any higher than the energy stored in the transformer core) then you can find out how many years the MOV lives. Select an MOV that lives at least ten years under worst-case assumptions. That will probably result in a more than twenty years of real lifetime. And, in that time, most industrial operations are either rebuilt, ceased, hit by an atomic bomb or the Comet...
Gunnar Englund
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Half full - Half empty? I don't mind. It's what in it that counts.