Power transformers are used for transmission as a step up devices so that the I2r loss can be minimized for a given power flow. These transformers are designed to utilize the core to maximum and will operate very much near to the knee point of B-H curve (slightly above the knee point value).This brings down the mass of the core enormously.
Naturally these transformers have the matched iron losses and copper losses at peak load (i.e. the maximum efficiency point where both the losses match).
Distribution transformers obviously cannot be designed like this. Hence the all-day-efficiency comes into picture while designing it. It depends on the typical load cycle for which it has to supply. Definitely Core design will be done to take care of peak load and as well as all-day-efficiency. It is a bargain between these two points.
Power transformer generally operated at full load. Hence, it is designed such that copper losses are minimal. However, a distribution transformer is always online and operated at loads less than full load for most of time. Hence, it is designed such that core losses are minimal.
In Power Transformer the flux density is higher than the distribution transformer.
Maximum Efficiency
The main difference between power and distribution transformer is distribution transformer is designed for maximum efficiency at 60% to 70% load as normally doesn’t operate at full load all the time. Its load depends on distribution demand. Whereas power transformer is designed for maximum efficiency at 100% load as it always runs at 100% load being near to generating station.
Distribution Transformer is used at the distribution level where voltages tend to be lower .The secondary voltage is almost always the voltage delivered to the end consumer. Because of voltage drop limitations, it is usually not possible to deliver that secondary voltage over great distances.
As a result, most distribution systems tend to involve many ‘clusters’ of loads fed from distribution transformers, and this in turn means that the thermal rating of distribution transformers doesn’t have to be very high to support the loads that they have to serve.