Fuses may adequately protect small transformers, but larger ones require overcurrent protection using a relay and CB, as fuses do not have the required fault breaking capacity. Under normal conditions, these currents balance. If the difference exceeds a threshold, it indicates an internal fault, and the relay trips the circuit breaker. It is the most sensitive protection for internal winding. Transformer protection is crucial as transformers are one of the most critical and expensive components of any distribution system. Setting procedures are only discussed in a general nature in the material to follow.
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