A transformer is a device used to transfer energy from one AC circuit to another and to increase (step up) or reduce (step down) voltage as required. Transformers are an essential component in an electrical grid. Electricity generated in a power station must be stepped up to the appropriate voltage for transmission (between 100 and 800 kV) and then stepped down again to the distribution voltage (110 - 230 V), which is delivered to homes. Note that the voltage of DC cannot be transformed in the same way as it can for AC. (See Alternating current - http://www.abb.com/cawp/abbzh250/9c53a832c9cfedd1c1257770002d99f8.aspx)
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