Abstract Nowadays, Indian power distribution companies (PDCs) are implementing smart distribution networks. Older cities are becoming smarter as per the recent government’s policy. Existing overhead distribution lines are being replaced by underground cables as an essential criterion of a smart city. One of the main problems arising in this process is the overheating of the neutral grounding resistor (NGR) in 11 kV distribution systems, even in normal conditions. NGRs, placed inside the substations, are overloading the air conditioning and exhaust systems of the substation. Sometimes failure of the NGR occurs due to overheating. In this paper, a comprehensive investigation has been carried out to reach the roots of this problem. It is observed that long underground cables have a higher ground capacitance than overhead distribution lines. Due to the higher cable capacitance, the third harmonic current circulates through neutral, which overheats the NGR even in normal conditions. The situation becomes worse when the substation runs on diesel generators (DGs) in an isolated state under main grid failure, as a higher amount of third-harmonic current circulates depending on the type of winding and pitch factor of the DGs. Different solutions are proposed, and their advantages and disadvantages are analyzed. Finally, the rating of the NGR is modified, and louvers-cooling fan arrangement is preferred for the running substation.
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