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A transformer can catch fire when damaged, aging or defective insulation contributes to an electrical fault, or when an external problem creates sparks or hot material that ignites nearby combustibles. In oil-insulated units, a severe failure can rupture the tank and release combustible liquid, increasing the risk that fire will spread. The initiating fault, ignition and spread are separate steps—and the cause of any particular fire requires an incident-specific investigation.
How a transformer failure can become a fire
A useful way to understand the risk is as a chain: an internal defect or external contact leads to an electrical fault; the fault produces an arc, sparks or hot material; that heat ignites nearby combustible material; and, in some cases, released insulating liquid or nearby equipment helps the fire spread. Not every electrical failure produces a fire, and not every transformer contains oil.
Common pathways to ignition
Aging, damaged or defective insulation
Schneider Electric identifies compromised internal insulation as a main cause of transformer failure. It describes cumulative aging, mechanical damage, and design or manufacturing faults as possible contributors. During service, vibration and other mechanical stress can damage insulation, while aging can degrade paper and oil in transformers that use those materials. Insulation failure can make an internal electrical fault more likely, but it does not mean a fire will always follow. Schneider Electric’s transformer failure FAQ was published on 25 August 2025.
Arcing, sparks and hot material
An electrical fault may produce an arc or hot material capable of igniting nearby combustible material. The National Interagency Fire Center lists arcing, fuses, transformers, lightning arrestors, vegetation contact, wildlife contact and loose connectors among electrical-power equipment and conditions associated with wildfire ignition pathways. It notes that sparks or molten metal falling from conductors or transformers can ignite dry fuels below. These are possible pathways, not a finding about the cause of a particular transformer fire. NIFC’s wildfire investigation guidance describes these risks.
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Lightning and other electrical disturbances
Lightning arrestors appear among the equipment in NIFC’s discussion, so lightning-related equipment or disturbances are possible considerations. The available sources do not establish how often lightning initiates transformer fires or a universal sequence by which it does so. It should not be assumed to be the cause simply because a fire involved electrical equipment.
Why some fires spread beyond the transformer
In an oil-insulated transformer, a severe failure can rupture the tank. The U.S. Nuclear Regulatory Commission’s historical discussion describes the possibility of oil moving with firefighting water toward drainage and fire spreading to nearby cables or buses. This is why containment, drainage and separation are important considerations for facility professionals. The account does not mean that every transformer contains oil or that every oil release ignites. The NRC’s Issue 107 record is historical rather than a current, general fire-rate estimate.
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What incident examples do—and do not—show
North Hyde Substation, United Kingdom
In a 2 July 2025 press release, Ofgem said the National Energy System Operator’s final report had established a preventable technical fault as the root cause of the North Hyde Substation fire of 20 March 2025. Ofgem said it would examine compliance with legislation and licence conditions. That release reports the position on its publication date; it is not a universal explanation for transformer fires or confirmation of any later regulatory outcome. Read Ofgem’s release.
Mission Substation, California
A California Public Utilities Commission account published in 2004 described a cable failure in a switch cabinet that caused a short circuit and fire during a 2003 outage. Flammable insulation and energized auxiliary equipment contributed to the incident’s severity. It illustrates one documented sequence, not a general cause profile for transformers. Read the PUC account.
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What the historical NRC figure means
The NRC’s Issue 107 historical discussion says that 3 of 14 main-transformer failures in the specific record resulted in fire. That is a count from that discussion, not a current probability for all transformer failures or a rate applicable across transformer types, locations and operating conditions. The sources cited here do not establish a broad current rate or a generally applicable ranking of transformer-fire causes.
Independent reader supportYour contribution helps us test, update, and keep practical guides available for everyone.Prevention and containment are professional responsibilities
Controls depend on the installation, work being performed and jurisdiction. For U.S. construction work, OSHA’s 29 CFR 1926.405 addresses indoor oil-insulated transformers that present an employee fire hazard: it requires a vault and safeguards for nearby combustible materials, buildings and openings against fires originating in or near the transformers. It also requires transformer vaults to contain fire and combustible liquids. This provision is not a complete design code for every transformer installation. See the OSHA regulation.
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For power-station settings, the NRC’s historical material identifies deluge and drainage systems, fire barriers, maintenance, operating procedures, and drainage that directs liquids away from buildings and safety-related equipment as professional planning considerations. These are matters for qualified operators and engineers, not instructions for an untrained person to inspect or modify energized equipment. The NRC discussion provides the context.
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