The differential pilot-wire protection is based on the principle that under normal conditions, the current entering one end of a line is equal to that leaving the other end. As soon as a fault occurs between the two ends this condition no longer holds and the difference of incoming and outgoing currents is arranged to flow through a relay which operates the circuit breaker to isolate the faulty line. There are several differential protection schemes for the lines. They are:
1. Merz-Price voltage balance system
2. Translay scheme
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