Which type of protection relay utilizes current transformers to ensure a balance between current inflow and outflow?

A differential relay specifically utilizes current transformers to compare the current entering and exiting a section of electrical equipment, such as a transformer or generator, to ensure that the current flow is balanced. It operates by measuring the difference between these two currents. If the currents are equal, indicating no fault, the relay remains inactive. However, if there is a discrepancy—signaling a potential fault such as a short circuit or equipment failure—the differential relay will trip, isolating the faulty section from the system to protect both the equipment and the overall stability of the electrical network.

This functionality is crucial for maintaining the integrity and reliability of power systems. By using current transformers, differential relays can accurately detect any reduction in performance or safety due to faults, making them a vital component in electrical protection schemes.