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Grease is not used in Transformers. An insulation oil is used to circulate around the internal coils to dissipate the heat generated when the transformer is in operation. Thermo syphon principals are used. Warm oil moves to the top of the transformer case and is displaced by cooler oil moving to the bottom creating a flow in the oil and there by aiding in the cooling of the coils. Transformers in larger sizes have cooling fins or tubes through which the oil flows to give more surface area to dissipate the internal coil heat. Smaller size transformers use the oil contact with the oil containment shell of the transformer to dissipate the heat.

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