A rotary transformer for coupling electrical power at a high level into a rotor operable at a high rotational speed without the introduction of undesirable electromagnetic torque and problems of dynamic mechanical instability comprises a stationary primary mounted in surrounding relationship with respect to the rotor, an electromagnetic shield having an exterior surface thereon mounted to the rotor, and a secondary mounted on the exterior surface of the shield. The secondary is connected in an electrical circuit with the load such that the application of an alternating current having a frequency of at least one (1) kilohertz to the primary produces an alternating electromagnetic field having flux lines in the secondary in the secondary oriented generally parallel to the axis of rotation. The alternation of the electromagnetic field induces a voltage in the secondary that generates an electric current to the load. The shield isolates the rotor from the alternating electromagnetic field to prevent eddy current heating of the rotor.