An important factor in the design and operation of transformer is the relation between the life of the insulation and operating temperature of the transformer. Therefore, temperature rise resulting from the losses is a determining factor in the rating of a machine. We know that copper loss in a transformer depends on current and iron loss depends on voltage. Therefore, the total loss in a transformer depends on the volt-ampere product only and not on the phase angle between voltage and current i.e., it is independent of load power factor. For this reason, the rating of a transformer is in kVA and not kW.

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