The power transformer is designed to increase transformation capacity with reduced footprint.
The company has partnered with Schneider Electric and Cargill to develop the green and fire safe transformer.
Tata Power executive director Ashok Sethi said: "With diminishing open space and its availability, Tata Power has successfully built and adopted technological alternatives that will overcome the space constraints and provide safe installation.
"We aim to introduce further innovations in technology to ensure smooth, secure services."
The transformers use natural esters that can eliminate the risk of fire with their high fire point, up to 350° C, capability compared to conventional mineral oil filled transformers.
The fluid, which is derived from a carbon-neutral renewable resource, is biodegradable, non-toxic and non-hazardous in soil and water.
Tata Power serves over 618,000 residential, commercial and industrial customers.
