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This paper presents a novel scheme based on error estimation for identification of magnetizing inrush and internal fault conditions in transformers. Because the inrush current is a peaked wave with a dead angle, we can discriminate internal fault current from inrush current by comparing the similarity between the actual wave and two reference waves under two different frequency conditions per half cycle. Experimental results indicate that this technique is effective under different fault conditions, and an operating time of 10-13 ms can be achieved for internal faults in transformers.Index Terms-Current differential protection, error estimation, inrush current, peaked wave, transformer.

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