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A voltage transformer is an electrical device used to transform voltage from one level to another. It is primarily used in power transmission and distribution systems to step up or step down the voltage of alternating current (AC) electricity. 

Functioning:

Voltage transformers operate based on the principle of mutual induction, where an alternating magnetic field in a primary winding induces a voltage in a secondary winding. They consist of two sets of windings:

1. Primary Winding: This is the input side of the transformer, connected to the source of alternating voltage.

2. Secondary Winding: This is the output side, where the transformed voltage is taken. The number of turns in the primary and secondary windings determines the ratio of transformation. If the secondary winding has more turns than the primary, it's called a step-up transformer, increasing the voltage. Conversely, if it has fewer turns, it's a step-down transformer, reducing the voltage.

Types:

• Power Transformers: Large units used in substations for high-voltage transmission.

• Distribution Transformers: Smaller units found near consumers' premises for reducing voltage to usable levels.

• Instrument Transformers: Specialized transformers like current transformers (CTs) and potential transformers (PTs) used for metering and protective relaying in electrical systems.

Voltage transformers play a critical role in the electrical grid, enabling efficient power transfer, ensuring safety, and facilitating the compatibility of different electrical equipment with the grid's voltage levels.