What is an oil immersed transformer and how does it function in power systems?

An oil immersed transformer is a type of transformer that uses oil as an insulating and cooling medium. In power systems, it functions by transferring electrical energy between circuits through electromagnetic induction while being submerged in oil, which dissipates heat generated during operation. The oil also provides electrical insulation, preventing arcing and enhancing the transformer’s efficiency and longevity in high-voltage applications.