A new transformer has been introduced by siemens which is not only biodegradable, but also less flammable than the mineral oil. Due to this, transformer substations will be able to feed power into the grid, while confirming to strict environmental regulations. Siemens has developed a new green transformer so that it could be environmental friendly. In the last fiscal year, the company generated revenues of Euro17 billion from its environmental portfolio alone. A transformer is generally used to raise or lower the voltage in a substation as the situation demands. Due to this, the transformer becomes hot and this heat must be eliminated by means of a liquid coolant. The insulation fluid used in siemens transformer is made of natural ester liquid based on vegetable oils, such as rape seed, soybean and sunflower oils. This makes it completely biodegradable. This transformer can be used in areas where stringent environmental restrictions apply. The load capacity can be increased and the capital expenditure can be reduced in this type of transformer.