The oil in a transformer serves two main purposes:
Cooling
The oil in a transformer helps in dissipating heat generated during the operation of the transformer. As electrical currents flow through the transformer's windings, heat is produced due to resistive losses. The oil helps to transfer this heat away from the core and windings, thus keeping the transformer cool and preventing overheating.
Insulation
The oil also acts as an insulating medium in a transformer. It helps to prevent electrical discharges and short circuits by providing insulation between the windings and the transformer's core. This insulation property of the oil is crucial for maintaining the integrity and safety of the transformer's operation.
