The protection system is crucial for grid stability and safeguarding essential components, including generators, transformers, transmission systems, and power connections. The smart grid system increases the flexibility and complexity of the power system, making fault detection and isolation the primary challenges for the protection system. This paper presents an optimal protection solution using an adaptive electronic relay to enhance reliability and enable self-healing. The proposed protection algorithm quickly detects faults and automatically isolates them from the rest of the healthy system in 25ms. The relay operation algorithm has been validated using MATLAB SIMULINK software. The results confirm the effectiveness of the proposed smart electronic relay in various sections of the smart grid system, including transformers, transmission and distribution.
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