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What is a Transformer (And What Does It Do)? | Electrical4U· Working Principle of Transformer. The working principle of a transformer is very simple.Mutual induction between two or more windings (also known as coils) allows for electrical energy to be transferred between circuits. This principle is explained in further detail below. Transformer Theory. Say you have one winding (also known as a coil) which is supplied by an alternating electrical source.

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