Current differential protection has been widely used as the primary protection of transformers. However, inrush currents during transformer energization can cause misoperation of the protection when the second harmonic restraint algorithm fails. This paper proposes a power differential protection scheme based on the fault component network (FCN), which is free from inrush detection and computationally cheap. First, the fault component differential power (FCDP), defined as the differential active power of a transformer in the FCN, is analyzed under different conditions. Second, a transformer protection scheme is presented based on the FCDP and the traditional differential power. A removal algorithm of decaying direct current (DDC) offset is developed to accurately estimate the FCDP. The performance of the scheme is tested under various conditions, including internal faults, external faults and transformer energization. The simulations using PSCAD, and Real Time Digital Simulator (RTDS), experiments in the Electrical Power Dynamic Laboratory (EPDL) and real recording data validate that the proposed method can protect the transformer reliably.