Three-phase transformers are used for power generation and transmission because they are more efficient and cost-effective than single-phase transformers. They have three cores arranged 120 degrees apart that operate on the principle that the fluxes in each core sum to zero at any given time. Various winding configurations like star-star, delta-delta, star-delta, and delta-star can step voltages up or down as needed. For high loads, three-phase transformers can be connected in parallel as long as their polarities match, phase displacements are aligned, and voltage ratios are equal to prevent circulating currents.