Increasing awareness of safety and the environment demands the replacement of mineral oil by bio-oils in many electrical applications. Palm oil has been identified as a potential candidate for mineral oil in transformers. This study reviews the physio-chemical and electrical properties of palm oil as insulation fluid. Analysis of electrical properties has been conducted on AC and lightning impulse breakdown voltage and dielectric parameters, whereas physicochemical properties are discussed in terms of viscosity, acidity, and moisture. The performance of palm oil under aging and pressure is also presented. Several case studies of palm oil in the presence of nanoparticles have been reviewed. Concerning economic and technical perspectives, palm oil has a significantly high potential as a transformer fluid. Further studies on the suitability of palm oil as a transformer fluid is required to evaluate the long-term performance concerning partial discharge, transient energy, aging performance under various ambient conditions, and in the presence of suspended nanoparticles.
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