1. Substations play an important role in power transmission by transforming voltages between transmission and distribution levels using transformers, circuit breakers, and other equipment. 2. There are two main types of substations: air insulated, which are outdoors, and gas insulated, which can be either indoor or outdoor. 3. Air insulated substations contain key components like transformers, circuit breakers, and monitoring equipment to transform and distribute power safely throughout the transmission and distribution system.