It is to allow you to draw from a much higher power circuit without blowing up all your wires. The purpose of the transformer isn't to prevent you from overloading a circuit. Which would have been centralized to a single disposal facility elsewhere, but is now scattered in multiple locations throughout your base. It's also a much larger investment of resources to do this, because you're not just replicating power production all over the place, but you are also required to deal with waste products, like heat, or CO2 or P-H2O or whatever. But doing so will be wasteful, as you cannot produce those values exactly. You could, instead, only ever build circuits that you have manually counted out to 1 kw on basic Wire, or 2 kw on Conductive Wire, and build generators for those lines totaling to the 1 kW or 2 kW requirements. So if you're producing upwards of 10 kw of power, you can use a Transformer to split out 1 kw of it for a circuit made from basic Wire. This lets you draw from your entire Power production volume anywhere you can run the wire to, instead of having to set up a new Generator of some description for each and every circuit you want or need to set up. The Transformers allow you to have all your power production centralized onto a single network. Ok, but can you explain then what the point is for having one? If you're already limiting the circuit to 1 or 2k watts, what does the transformer do?
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