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You're right, it's a waste of power because a 150kVA transformer will have more losses than a 7kVA transformer.

However, the transformer doesn't generate any power, it just converts it from one voltage/current to another. A 150kVA transformer with no load connected to it will supply 0VA and it won't consume anywhere near 150kVA, the only apparent power consumed would be the magnetising current and the real power consumed would be the core losses plus a small copper loss.

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