The word “protection” is used to describe the whole concept of protecting a power system. In today’s demanding and dynamic business world, it is important to model the power system in order for generating and utility service providers make right decisions when it embark on any form of asset expansion. Modeling and analysis of protection system allows the proposed system to be checked for any potential problems such as mal-operation and incompatibility. In this paper, differential protection as the most vital significance to providing reliable operation of the power system is analyzed. MATLAB/SIMULINK platform were used to analyze differential protection relay for large transformers and transmission line. The basic approach is to protect within the zone of protection and block against other operating conditions external to the zone of protection. . The relay was modeled for the following fault conditions; inrush current, internal and external faults. The obtained results illustrates that the differential relay represents an appropriate action. The relay was able to discriminate between inrush, fault and no-fault conditions.
Keywords: Differential protection, transformer, transmission line, inrush current, faults, Matlab/Simulink

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