This paper develops a technical framework for the next-generation power grid transformer (NGPGT) for grid renewables. This framework is structured to overcome the environmen-tal challenges produced due to the explosive use of non-renewable base energy generation sources. The use of these sources cannot meet the required electricity for the world’s growing community due to their availability, cost, and lack of flexibility. However, modern energy systems focus on the use of renewable energy sources where the grid transformer’s interaction acts the essential role in their generation, transmission, and distribution. The lack of central-ization, local monitoring, interoperability, authenticity, and precise bi-directional flow may limit the application of current framework power grid transformers in grid renewables. In this paper, a new technical framework, called NGPGT, is developed by introducing some ex-tended features for addressing the challenges shown in the current-generation transformers. This is structured by enabling some advanced technical features with the existing frame-work which includes automatic condition monitoring, intelligent inverters, edge computing, automatic controlling, and intelligent management. This paper also illustrates the benefits and scopes of the NGPGT compared to the existing transformer by assembling essential re-quirements and obligatory components. Additionally, this paper highlights a few difficulties of implementing NGPGT in terms of operational, communication, energy management, and economic point of view which may enable further research scopes for the researchers.