What is the difference between oil and dry type transformers?

The primary difference between oil used in transformers and dry-type transformers lies in the cooling and insulation methods. Oil-filled transformers utilize mineral oil or synthetic oil for cooling and as an insulating medium, offering efficient heat dissipation and protection against electrical faults. This oil acts as both a coolant and an insulator, ensuring optimal performance in high-load conditions. Dry-type transformers, on the other hand, rely on air or gas for cooling, which eliminates the need for oil but may require larger designs for adequate heat dissipation. Additionally, oil-filled transformers are more suited for outdoor applications and larger power capacities, while dry-type transformers are often used indoors or in environments where safety concerns related to flammable materials are prioritized.