The function of oil used in transformers are cooling and insulation. Transformer oil must have certain properties like high dielectric strength, low viscosity, high flash point, very low moisture or water content, high specific resistance and many more. Petroleum based synthetic and mineral oil used over last few decades, which affects the environment because of their non-biodegradability characteristics. It can be overcome by using any liquid as coolant and insulation purpose in transformer, which should have all the basic properties of transformer oil and should be biodegradable. Due to several advantages, researchers focused on biodegradable and renewable alternative of mineral oil. PFAE has been considered as a substitute of conventional petroleum based oil. We are currently involved in supplying PFAE oil for replacement of transformer insulation mineral oil in Malaysia.