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Dry-Type vs. Liquid Transformers

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Dry-Type vs. Liquid Transformers

Choosing between a dry transformer and a liquid-filled transformer is one of the most important decisions in medium-voltage distribution design. From factories and data centers to hospitals and renewable energy projects, the transformer you select determines safety levels, lifecycle cost, and the overall reliability of the power system. Increasingly, many projects are evaluating whether a Dry-type Power Transformer can replace traditional oil-immersed units without sacrificing performance.

In simple terms, a Dry-type Power Transformer uses solid insulation and air cooling instead of oil, which makes it safer and cleaner for indoor and sensitive environments, while liquid-filled transformers rely on insulating oil that enables higher power density and lower initial cost but introduces fire, leakage, and maintenance risks.

As electrical infrastructure modernizes, engineers, EPC contractors, and facility managers are rethinking long-held assumptions about transformer selection. Product data from leading manufacturers shows that modern epoxy-resin cast Dry-type Power Transformer designs can now cover capacities roughly from 50 kVA up to 3000 kVA and voltages from about 6.6 kV to 35 kV, making them a realistic alternative for many distribution and industrial projects that traditionally specified oil units.

At the same time, oil-immersed transformers remain essential in high-power and outdoor utility applications, with typical voltage ranges from 6 kV to 35 kV and capacities up to 31500 kVA. This article will walk you through what each technology is, compare their performance and costs, and give you practical guidance on when a Dry-type Power Transformer is the better choice and when you should stay with liquid-filled designs.

Table of contents for this guide:

  • What Is a Dry-Type Transformer?

  • What Is a Liquid Transformer?

  • Benefits and Drawbacks of Dry-Type Transformers

  • Benefits and Drawbacks of Liquid Transformers

  • How to Choose Between a Dry vs. Wet Transformer

What Is a Dry-Type Transformer?

A dry-type transformer is a medium-voltage or low-voltage transformer whose core and windings are insulated with solid materials and cooled by air, so a Dry-type Power Transformer does not contain insulating oil and is typically designed for safe, low-maintenance indoor power distribution.

A modern Dry-type Power Transformer generally uses epoxy resin or similar solid insulation to encapsulate its windings and core. In epoxy cast designs, both the core and the windings are fully embedded in high-quality resin, providing strong mechanical strength, high dielectric performance, and excellent resistance to moisture and contamination. Cooling is achieved through natural air (AN) or forced air (AF) ventilation, often assisted by carefully designed cooling ducts and fan systems. 

From typical product ranges, a Dry-type Power Transformer can handle capacities roughly between 50 and 3000 kVA and voltages from about 6.6 kV up to 35 kV, which comfortably covers most building, commercial, and many industrial distribution needs. Because there is no oil, the fire load is much lower, and there is no risk of oil leakage into floors, cable ducts, or groundwater.

Another key trait of the Dry-type Power Transformer is its suitability for harsh indoor environments. Epoxy cast insulation delivers low partial discharge levels, high thermal class ratings, and strong short-circuit withstand capability. Combined with robust magnetic core design, this enables long service life, typically around 30 years or more, with minimal maintenance requirements when installed correctly. 

Key characteristics of a Dry-type Power Transformer

When you look at product specifications and technical datasheets, the typical characteristics of a Dry-type Power Transformer include:

  • Insulation system: Epoxy resin cast or vacuum pressure impregnated (VPI) coils, often using fiberglass reinforcement for mechanical strength. 

  • Cooling method: Natural air (AN) for standard loading, with optional forced air (AF) to boost power capacity or withstand overloads. 

  • Voltage and capacity range: Typically about 6.6 kV to 35 kV on the HV side and 50–3000 kVA in rated capacity, depending on model. 

  • Installation environment: Basements, high-rise buildings, hospitals, commercial centers, tunnels, rail stations, and industrial plants where low fire risk and zero oil are critical.

Because a Dry-type Power Transformer does not need a liquid containment pit, it is especially attractive where floor space is expensive or hard to obtain. In some product lines, low-noise designs are available, meeting strict noise targets for urban infrastructure and data centers.

Finally, many modern Dry-type Power Transformer designs integrate with smart monitoring systems and digital protection relays. This makes remote condition monitoring easier and aligns well with smart grid and Industry 4.0 initiatives, further strengthening the case for dry technology in advanced facilities. 

What Is a Liquid Transformer?

A liquid transformer, often called an oil-immersed transformer, is a power transformer whose core and windings are fully submerged in insulating liquid such as mineral oil or synthetic ester, using the liquid for both electrical insulation and cooling, which makes these transformers ideal for high-power, outdoor, and utility applications.

In a typical oil-filled transformer, the active part (core and windings) is installed in a sealed steel tank filled with insulating oil. The liquid provides a high dielectric strength around the windings, fills small gaps where air could cause partial discharge, and transfers heat from the coils to the tank walls and external radiators. From there, heat is dissipated to the ambient environment via natural or forced convection. Cooling arrangements such as ONAN, ONAF, or OFAF (natural or forced oil and air circulation) help manage temperature rise for large units.

According to product catalogues, typical three-phase oil-immersed transformers cover approximately 6–35 kV primary voltage, with capacities from about 15 kVA to 31500 kVA or even higher. This broad range means a liquid-filled transformer can be used from small distribution transformers in rural networks all the way up to large step-up transformers in medium-size substations.

Oil-immersed designs are often chosen for outdoor installations such as pole-mounted transformers, pad-mounted substations, or compact substations feeding industrial plants, renewable energy projects, and utility networks. Oil adds thermal inertia, which helps the liquid transformer manage load peaks and short-term overloads better than a comparable Dry-type Power Transformer.

Where liquid-filled transformers are typically used

While you can technically install a Dry-type Power Transformer in many locations, there are scenarios where a liquid-filled transformer is still the most common and economical choice:

  • Utility substations and distribution networks where large capacity and high voltages are required, and space is available for oil containment and fire safety separation. 

  • Heavy industrial plants with controlled environments and established maintenance teams, where oil sampling and servicing can be scheduled without disruption. 

  • Rural and remote installations where initial cost is the main constraint, but there is sufficient outdoor area for oil bunds, fire walls, and safe distances to buildings. 

In these situations, a liquid transformer offers a combination of high power density, proven technology, and lower upfront purchase price, even though its lifecycle maintenance needs are higher than those of a Dry-type Power Transformer

Benefits and Drawbacks of Dry-Type Transformers

A Dry-type Power Transformer offers major benefits in safety, environmental performance, and low maintenance, but it has drawbacks such as higher initial cost, larger size per kVA, and practical limits on very high capacities and outdoor use.

From both manufacturer data and real-world case studies, the biggest driver for adopting a Dry-type Power Transformer is safety. Because the insulation system is solid and there is no flammable oil, the risk of fire and explosion is much lower than in liquid-filled units, and there is no oil contamination risk in basements or tunnels. Many building codes therefore favor dry technology for indoor installations with high occupancy.

A second benefit of the Dry-type Power Transformer is its low maintenance profile. Without oil, there is no need for periodic oil sampling, dissolved gas analysis, filtration, or oil replacement. One technical article reports that eliminating oil-related tasks can reduce lifecycle maintenance costs by more than 60 percent compared to oil-filled units over the same period.This is particularly valuable in remote or difficult-to-access sites where maintenance logistics are expensive.

Third, the Dry-type Power Transformer provides strong mechanical strength and short-circuit withstand capability. Epoxy-cast windings are rigid and resistant to movement during fault events, and advanced designs show very low partial discharge levels, which contributes to long service life. Typical specifications indicate life expectancy of 30 years or more when operated within thermal limits. 

However, engineers must also consider the limitations of the Dry-type Power Transformer. Initial purchase cost is usually higher than oil-immersed alternatives, often estimated to be roughly 15 to 20 percent more at the time of purchase. The power density is lower, meaning you may need a slightly larger footprint for the same kVA rating. In very high power levels, especially above the upper medium-voltage distribution range, dry technology may not be available or cost-effective.

Main advantages of a Dry-type Power Transformer

Key advantages you can expect from a Dry-type Power Transformer include:

  • Fire safety and low fire load: No flammable oil, self-extinguishing insulation, and reduced need for fire walls or oil pits in many building codes. 

  • Environmental protection: No risk of oil leaks contaminating soil or water, making it ideal for green buildings, hospitals, and environmentally sensitive areas. 

  • Low maintenance: No oil sampling, no oil replacement, and minimal mechanical servicing, which significantly reduces lifetime maintenance cost and outage risk. 

  • Low noise: Many Dry-type Power Transformer designs achieve very low sound levels, suitable for urban and indoor use. 

  • Moisture and contamination resistance: Resin encapsulation gives excellent moisture resistance, which is ideal for humid environments such as coastal areas, tunnels, or underground stations. 

Limitations of a Dry-type Power Transformer

On the other hand, the Dry-type Power Transformer has practical drawbacks you should include in your project evaluation:

  • Higher initial capital cost compared with standard oil-immersed units of the same rating. 

  • Lower power density, so the equipment room may need to be slightly larger to accommodate the transformer and adequate ventilation paths.

  • Limited outdoor suitability unless installed in properly designed enclosures or buildings that protect it from rain and pollution. 

  • Upper rating limits, especially at very high voltages or capacities, where a liquid transformer might be the only practical choice. 

Performance comparison snapshot

The following table summarizes key performance aspects of a Dry-type Power Transformer compared to a typical oil-immersed unit, based on technical data and manufacturer comparisons: 

Parameter Dry-type Power Transformer Oil-immersed transformer
Insulation medium Solid epoxy or similar resin Mineral oil or synthetic insulating liquid
Cooling method Natural or forced air Natural or forced oil plus air or water
Typical temperature range Roughly −40 to around +120 °C Roughly −25 to about +105 °C
Noise level Very low, can be engineered below about 50–60 dB Moderate, often higher sound levels
Service life Around 30 years or more with minimal maintenance About 25–30 years with regular oil maintenance
Maintenance intensity Visual inspections and basic tests only Periodic oil sampling, analysis, filtration, topping up
Fire and leakage risk Very low, no oil to leak Needs fire safety measures and oil containment

This snapshot illustrates why more designers are willing to accept the higher purchase cost of a Dry-type Power Transformer: the safety, environmental, and maintenance advantages often outweigh the initial price difference over the system’s lifetime. 

Benefits and Drawbacks of Liquid Transformers

A liquid-filled transformer provides high power density, wide voltage and capacity coverage, and lower upfront cost, but it carries drawbacks such as flammable oil, risk of leakage, higher maintenance, and stricter environmental and fire safety requirements.

From an engineering perspective, the greatest advantage of a liquid transformer is its ability to handle very high capacities at reasonable cost. Because liquid is an excellent heat transfer medium, a liquid transformer can be built more compactly than a Dry-type Power Transformer for the same rating. This is crucial in utility substations, renewable feeding stations, and heavy industrial complexes where tens of MVA are needed on a single unit. 

Another advantage lies in well-understood behavior and global standardization. Oil-immersed transformers have been used for decades in transmission and distribution networks worldwide. Spare parts, maintenance procedures, and testing methods are well established. For many grid operators and industrial plants, staff are already trained for oil management, making it easy to integrate new liquid transformers into existing maintenance regimes.

On the cost side, the initial purchase price of a liquid transformer is often lower than that of a comparable Dry-type Power Transformer, sometimes by about 15 to 20 percent for similar ratings. This appeals to cost-sensitive projects, particularly where the owner is focused on CAPEX and is prepared to accept higher OPEX over time.

Main advantages of liquid-filled transformers

Typical advantages of liquid-filled designs include:

  • High power density: More kVA per cubic meter, especially useful in large utility transformers and renewable step-up units. 

  • Wide rating range: From small distribution sizes to tens of MVA at voltages up to at least 35 kV and beyond. 

  • Lower initial cost: The purchase price is usually lower than a Dry-type Power Transformer of similar rating. 

  • Load handling: High thermal inertia and effective cooling help manage temporary overloads and fluctuating power flows. 

Limitations and risks of liquid transformers

However, a liquid transformer also introduces important risks and constraints:

  • Fire and explosion risk: Mineral oil is flammable, and faults can lead to fires or tank ruptures, requiring strict fire safety design and protection systems.

  • Leakage and environmental impact: Oil leaks can contaminate soil and water, triggering environmental cleanup obligations and operational downtime. 

  • Higher maintenance costs: Oil sampling, dissolved gas analysis, moisture checks, and eventual oil replacement significantly add to lifetime costs. One comparison suggests annual maintenance for oil units can fall in the thousands to tens of thousands of dollars per transformer. 

  • Additional civil works: Oil containment pits, bund walls, and drainage systems are often required by codes, adding complexity to civil design and installation and offsetting some of the apparent CAPEX advantage. 

Lifecycle cost comparison

When considering total cost of ownership, a Dry-type Power Transformer often comes out ahead despite higher purchase cost. One lifecycle analysis shows that:

  • Dry units avoid oil replacement, hazardous waste handling, and many maintenance operations.

  • Insurance premiums may be lower for sites that rely on Dry-type Power Transformer installations due to lower fire risk.

  • Over a 30-year period, the total cost of ownership for dry technology can be 25 to 35 percent lower than that of oil-immersed transformers when all operational expenses are included. 

This is why many operators who plan for long-term operation and minimal downtime are transitioning more loads to Dry-type Power Transformer solutions where technically feasible.

How to Choose Between a Dry vs. Wet Transformer

To choose between a Dry-type Power Transformer and a liquid-filled transformer, you should match the technology to the installation environment, safety and environmental requirements, power rating, and lifecycle cost priorities, selecting dry for indoor and sensitive sites and liquid for high-power outdoor and cost-driven applications.

The decision is rarely as simple as “dry is better” or “oil is cheaper.” In practice, you need to weigh several axes: environment, safety, capacity, code requirements, and financial strategy. Below is a practical framework to help you decide when a Dry-type Power Transformer is the right fit and when a liquid transformer makes more sense.

Environment and safety

Start by looking at the physical location and safety requirements:

  • Indoor installations with high occupancy
    For basements, high-rise buildings, offices, hospitals, shopping centers, and schools, fire risk and smoke generation are critical concerns. Codes in many regions either recommend or strongly favor dry technology in these environments. A Dry-type Power Transformer avoids oil spill scenarios and simplifies fire protection design. 

  • Confined or sensitive spaces
    Tunnels, underground rail stations, cleanrooms, and data centers are particularly sensitive to smoke, toxic gases, and contamination. Dry insulation and air cooling make the Dry-type Power Transformer a safer choice, especially where egress routes and evacuation times are tight. 

  • Outdoor, remote, or utility substations
    Where transformers can be installed outdoors with appropriate clearances and containment, and where very high capacities are needed, a liquid transformer still dominates. The ability to cover up to 31500 kVA and beyond at medium voltages is a clear advantage over the typical range of a Dry-type Power Transformer

Power rating, voltage, and load profile

Next, you should map your load requirements to practical transformer technologies:

  • Within the dry range
    If your required rating falls comfortably inside standard Dry-type Power Transformer ranges (for example 630 kVA at 10 kV, or 2000 kVA at 20 kV), a dry design is nearly always worth evaluating first, especially for indoor use. 

  • At the upper edge or beyond
    For large industrial plants, step-up transformers for wind or solar farms, or small transmission substations requiring several tens of MVA, a liquid transformer is typically necessary. Dry technology in those ranges can be technically achievable but may be uneconomic or unavailable.

  • Highly variable or cyclic loads
    In scenarios with strong load cycling, such as renewable generation or industrial processes with peak demands, both technologies can work. However, the thermal mass of oil can help smooth out temperature changes, while the very low maintenance of a Dry-type Power Transformer may still provide a better TCO if the rating is within the dry range. 

Cost and lifecycle economics

Finally, compare economics across the full lifetime:

  • If you prioritize low CAPEX only, and the environment allows oil, a liquid transformer will normally appear cheaper at the purchasing stage.

  • If you prioritize low OPEX and total cost of ownership, especially over 20–30 years, a Dry-type Power Transformer usually wins. Lower maintenance, no oil handling, and simplified civil works combine to lower the long-term cost by a significant margin, as high as around 25–35 percent lower in some analyses. 

Application-oriented selection table

The table below gives a quick reference mapping common applications to the preferred transformer technology: 

Application scenario Recommended technology Reasoning
High-rise commercial building Dry-type Power Transformer Low fire load, no oil containment, compact indoor rooms
Hospital or medical campus Dry-type Power Transformer Safety, cleanliness, minimal maintenance near critical services
Data center or telecom hub Dry-type Power Transformer High reliability, low partial discharge, low noise
Underground rail or road tunnel Dry-type Power Transformer Fire safety and ventilation constraints
Urban substation in dense neighborhood Mix, often Dry-type Power Transformer indoors Safety and noise control vs. rating needs
Large utility substation in open area Liquid-filled transformer Very high capacities and outdoor design
Wind or solar farm step-up station Mostly liquid-filled transformer High MVA ratings and outdoor environment
Rural distribution pole or pad-mounted units Liquid-filled transformer Cost-sensitive, outdoor, long line lengths
Industrial plant with indoor load center Often Dry-type Power Transformer for load center Safety indoors, liquid transformers possibly used at site boundary

Practical decision checklist

When you prepare specifications or RFQs, use the following checklist to decide if a Dry-type Power Transformer should be your baseline:

  1. Is the installation indoors or near occupied spaces?
    If yes, prioritize a Dry-type Power Transformer for safety and code alignment.

  2. Is the required rating within the dry range (around 50–3000 kVA at up to 35 kV)?
    If yes, a Dry-type Power Transformer is technically feasible and often advantageous. 

  3. Do you want to minimize maintenance and unplanned outages?
    If yes, the low-maintenance nature of the Dry-type Power Transformer strongly supports choosing dry technology. 

  4. Are environmental and ESG targets important for the project?
    If yes, the absence of oil and leak risk makes the Dry-type Power Transformer an excellent fit for sustainable infrastructure. 

  5. Is the main goal lowest possible purchase price?
    If yes, and safety or environment constraints are manageable, a liquid transformer may still be justified, while you consider at least some Dry-type Power Transformer units for critical loads. 

In summary, both technologies have a clear role in modern power systems. A Dry-type Power Transformer provides unmatched safety, environmental performance, and low maintenance for indoor and medium-power applications, while liquid-filled transformers remain dominant for high-capacity outdoor and utility use. By systematically considering environment, rating, code requirements, and lifecycle economics, you can select the right transformer technology for each project and build electrical infrastructure that is safe, reliable, and financially sound over decades of operation.


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