Dry-Type vs Oil-Immersed Transformers: How the Insulation System Differs

The choice between a dry-type (cast-resin) and an oil-immersed transformer is usually made on safety, fire risk, and siting. But it also dictates a completely different insulation system. The materials that keep a dry-type unit alive are not the same as those inside an oil unit — and specifying for one while thinking of the other is a common, costly mistake. This guide contrasts the two insulation systems so you can specify the right materials for each.

Two Technologies, Two Cooling Media

A dry-type transformer cools and insulates with air and solid resin; an oil-immersed unit cools and insulates with mineral or ester oil. That single difference reshapes every insulation material in the active stack.

Dry-Type (Cast-Resin) Insulation System

Dry-type units rely on solid, air-cooled insulation — no flammable liquid.

  • Slot and phase insulation: flexible composites — DMD for standard Class B/F duty, NMN where thermal and tear margins matter, and NHN for the hottest, hardest-cycling designs.
  • Coil interlayer and end insulation: DMD prepreg — a resin-preimpregnated composite that bonds the LV coil layers during cure, eliminating voids.
  • Encapsulation: the whole active part is cast in epoxy resin, which also serves as the primary dielectric. No oil means no leak risk, so dry-types suit indoors, basements, and high-fire-risk sites.

The system is “solid” end to end: composites for structure, prepreg for coil bonding, resin for encapsulation.

Oil-Immersed Insulation System

Oil units insulate and cool with the oil itself, so the solid materials are paper-based and designed to be saturated.

  • Coil conductor insulation: cable paper — high-purity cellulose wound directly on the conductor, impregnated by oil to form the turn-to-turn dielectric.
  • Lead and connection wrapping: crepe paper — stretchable, conformable, ideal for terminations and leads leaving the tank.
  • Coil interlayer bonding: diamond dotted paper (DDP) — resin-dotted paper that cures to glue adjacent layers together once the coil is dried and oil-impregnated.
  • The oil is the dielectric: it fills every void, carries heat, and provides the bulk insulation between live parts and ground.

Here the system is “paper plus oil”: the cellulose does the structural insulating, the oil does the cooling and void-filling.

Side-by-Side

Aspect Dry-type (cast-resin) Oil-immersed
Cooling / dielectric medium Air + solid resin Oil (mineral or ester)
Main solid insulation Flexible composites (DMD/NMN/NHN), prepreg Cellulose paper (cable, crepe, DDP)
Coil bonding DMD prepreg, epoxy cast Diamond dotted paper, oil impregnation
Fire / leak risk Low (no liquid) Higher (contains oil)
Typical thermal class B/F/H by composite Class A (105°C) paper, raised by oil cooling
Common siting Indoor, urban, fire-sensitive Substations, outdoor, high-power

How to Choose the Materials

  1. The transformer type is decided first — by fire risk, siting, and power level, not by the insulation. Once the type is set, the material system follows.
  2. For dry-type, build from composites. Pick DMD/NMN/NHN by the hottest-spot temperature, and use DMD prepreg for coil interlayer and end insulation. See the dry-type selection guide for the full mapping.
  3. For oil-immersed, build from paper. Specify cable paper for the conductor, crepe for leads, and DDP for interlayer bonding — all saturated by the oil. Browse the Insulating Paper category for grades.

Common Mistakes

  • Using paper in a dry-type unit. Cellulose paper is designed to be oil-saturated; in air it loses its dielectric role and the coil is left under-insulated.
  • Using composites unimpregnated in oil. A dry-type composite is not the right turn insulation for an oil unit, where cable paper plus oil is the proven system.
  • Mixing thermal classes across one assembly. A Class H composite behind a Class A paper sleeve creates the weak link. Keep the whole insulation system at one verified class.

Conclusion

Dry-type and oil-immersed transformers solve the same problem with different chemistry: a dry-type unit is a solid system of composites, prepreg, and resin; an oil unit is a cellulose-and-oil system. Specify to the type, then to the temperature class, and the materials fall into place. For the dry-type side, start from our Flexible Composite Insulation category; for the oil side, from Insulating Paper.

Planning a transformer build and not sure which system — or which materials — fit? Contact our team with your type, rating, and duty, and we will map the insulation scheme to your spec.


Related reading: Insulation Materials for Dry-Type Transformers: A Complete Selection Guide

Browse flexible composites: Flexible Composite Insulation category

Browse insulating paper: Insulating Paper category