A device and method for monitoring the condition of an electrical power transformer in an electrical power grid synchronously measures current and voltage data at both a high voltage side of the transformer and a low-voltage side of the transformer and computes from this measured data corresponding transformer impedance data. These measurements and computations are repeated continuously in real time at a rates up to 30 Hz to provide a sequence of real-time transformer impedance data. An alarm signal is generated if a mean of the sequence of real-time transformer impedance data changes significantly.