The global climate crisis is characterized by the unsustainable increase in the world's average temperature due to carbon dioxide emissions. Finding ways to control the current value for average global warming and achieve carbon neutrality has become necessary to mitigate this damage. This research project aimed to structure Circular Economy practices to implement in the critical steps of Power Transformer life cycle. The study is supported by a thorough consumption analysis and an assessment of the transformer's life cycle. The first step was an analysis of energy consumption, followed by calculating the waste produced and the use cost of each transformer. Then, a Power Transformer Life Cycle Assessment was performed with software (openLCA), database (Eco-Invent), and circularity calculation tools (Circulytics), selected using the Analytical Hierarchical Process method. The study results emphasize that the most critical steps in the power Transformer life cycle are Drying, Laboratory Heating Test, and Vacuum + Filling. The last critical step is the Induced Test in the Laboratory. In its use phase, the total value of the energy consumed is 12.228.960 kWh, and the total cost is price + €578.260. The most affected environmental impact categories are Terrestrial ecotoxicity and Human non-carcinogenic toxicity, and the areas of protection are ecosystems and human health. The results of this LCA analysis support optimizing the power transformer product development process, minimizing its environmental impact, and fostering sustainability.