The novel power equipment represented by the Opto-Electrical Current Transformer (OECT) possesses unparalleled advantages compared to traditional Current Transformers (CTs), rendering it with vast potential in power systems. In the design of OECT, this study employs laser power supply and focuses on the overall perspective, particularly the design of the laser power supply module and the optical fiber digital transmission module. The laser power supply module selects a high-power semiconductor laser to provide power to the circuit, incorporating line filters, thermistor resistors, and a laser overcurrent protection circuit. An automatic temperature control circuit based on PI regulation is utilized to stabilize the working temperature of the laser diode (LD). The photoelectric conversion device PPC-6E achieves a maximum photoelectric conversion efficiency of 40%, and the MAX639 DC–DC conversion chip ensures stable output voltage. The optical fiber digital transmission module adopts a circuit composed of multiple NOR gate logic for electro-optical conversion, a low-power driving circuit based on the 74LVC1G07 chip, and the HFBR-2412 photoelectric converter to simplify the circuit board design. To achieve a higher communication baud rate, a quartz multimode optical fiber with a diameter of 62.5 μm is chosen. In the experimental phase, a simulation of high-power AC power with equal turns is conducted. The linearity/temperature test results demonstrate that the designed OECT in this study meets expectations. In the electrical automation test of substations, a comparison between traditional CTs and the designed OECT is carried out using traditional protection algorithms and optical differential protection algorithms. The results indicate that, compared to traditional protection algorithms, the optical differential algorithm using the designed OECT achieves faster protection times.