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One of the major causes of transformer failures is dielectric breakdown. Partial discharges cause gradual insulation degradation thus partial discharge activity monitoring provides transformer state insight. This paper gives an overview of common methods for partial discharges detection and source location in transformers, with special reference to the acoustic method as non invasive and interference resistant method suitable for application. For laboratory testing a model of a measuring system for acoustic emission measurement was developed. [ABSTRACT FROM PUBLISHER]