What differentiates oil transformers from dry-type transformers in grid applications?

Oil-filled transformers use liquid insulation and cooling, while dry-type transformers rely on air and solid insulation. Oil transformers offer higher power ratings, better heat dissipation, and compact design, making them suitable for high-voltage and outdoor grid applications. Dry-type transformers are safer for indoor use due to the absence of flammable oil but have lower capacity and higher operating temperatures. The choice depends on voltage level, location, fire safety requirements, and maintenance strategy.