This paper deals with the concept development and laboratory testing of an adaptive protection system for distribution networks with distributed energy resources. Adaptation of protection relay settings according to currently available short-circuit current at respective grid nodes, is one solution to cope with the challenges originating from distributed generation. The challenges in conventional protection systems in low and medium voltage grids are discussed and a new concept of an adaptive network overcurrent protection is developed. The soft- and hardware realization of the concept are described and first results of laboratory tests are presented
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