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Transformers require dried and filtered oil. During its use, the insulated oil absorbs moisture and is contaminated with soot, dirty particles, aging products. Even unused oil is not clean enough, as it may have absorbed air moisture or polluted the barrel in which it was stored. The efficiency of the oil as an isolating material is greatly reduced with increasing moisture. The transformer oil filtration system is therefore an important one that eliminates solid particles, dissolved gasses and dissolved water.
The Need for Oil Filtration:
The increased classification requirements for modern transformers and electrical appliances lead to increased electrical stress in isolation and fluids. To cope with these higher stresses, oils must have better dielectric strength and lower water content must be maintained. The oil filtration system handling these insulating fluid will improve the properties of the entire power transformers.
http://www.hering-vpt.com/article/transformer-oil-filtration-system/

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