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Generation of electrical power in low voltage level is very much cost effective. Theoretically, this low voltage level power can be transmitted to the receiving end. This low voltage power if transmitted results in greater line current which indeed cause more line losses. But if the voltage level of a power is increased, the current of the power is reduced which causes reduction in ohmic or I2R losses in the system, reduction in cross sectional area of the conductor i.e. reduction in capital cost of the system and it also improves the voltage regulation of the system.
Because of these, low level power must be stepped up for efficient electrical power transmission. This is done by step up transformer at the sending side of the power system network. As this high voltage power may not be distributed to the customers directly, this must be stepped down to the desired level at the receiving end with the help of step down transformer. Thus electrical power transformer thus plays a vital role in power transmission.