I. Introduction
Sensitivity of protective scheme against fault with reliable operation is the state of art in digital protection of power transformer. Low to high frequency phenomena takes place due to harmonics, magnetic field, transients and system parameter variations. Waveform distortion is generally caused by harmonics. Due to inherent non linear characteristics of core, transformer itself is a major source of harmonics in power system. Philosophies of Total Harmonic Distortion (THD) based transformer protection is due to algebraic relations of power system parameters and transformer core nonlinearity. Leading parameters, which are utilized to obtain transformer harmonic model are, winding resistance, leakage reactance, core characteristic and core-loss component [1]. Presence of DC component in AC system increases heat and decrease lifespan of the equipment. Effects of harmonics in power system will results in mal-operation of control devices, additional losses/noise, telephonic interference, resonance etc. Effect of current harmonics includes overloading, overheating, mal-operation of relay, skin effect and also capacitor overstressing. Similar consequences due to voltage harmonics are, rise in voltage distortion, noise, induction motor operation and protections.