Transformer at no-load behaves like:
an inductive reactor
When a transformer is operating at no-load, it means that no load is connected to its secondary winding. Only the primary winding is connected to the AC voltage source.
Under these conditions, the primary winding draws a small current, typically only 2% to 5% of the transformer's full-load current. This current is often referred to as the no-load current or excitation current ($I_0$). The no-load current has two main components:
The no-load current ($I_0$) is the phasor sum of the magnetizing current ($I_m$) and the core loss current ($I_c$). Since the magnetizing current ($I_m$) is significantly larger than the core loss current ($I_c$) and lags the voltage by nearly 90 degrees, the resultant no-load current ($I_0$) also lags the applied voltage by an angle slightly less than 90 degrees.
An inductive reactor is an electrical component, like an inductor, that primarily opposes changes in current and causes the current to lag behind the voltage. The behavior of the transformer at no-load is dominated by the magnetizing current required to build the magnetic flux in the core. This process is inherently inductive.
The equivalent circuit of a transformer at no-load can be simplified to a parallel branch containing a magnetizing inductance (represented by $X_m$) and a resistance ($R_c$) that accounts for core losses. Because the magnetizing reactance ($X_m$) is much smaller in value than the resistance ($R_c$), the overall impedance of this parallel branch is highly inductive.
Therefore, a transformer at no-load behaves essentially like an inductive reactor.
Based on the dominance of the magnetizing current, which lags the applied voltage, a transformer at no-load primarily behaves like an inductive reactor.
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