It is possible to design protection systems that respond only to fault conditions occurring within a clearly defined zone. This type of protection system is known as ‘unit protection’. Certain types of unit protection are known by specific names, e.g. restricted earth fault and differential protection. Unit protection can be applied throughout a power system and, since it does not involve time grading, is relatively fast in operation. The speed of response is substantially independent of fault severity. Unit protection usually involves comparison of quantities at the boundaries of the protected zone as defined by the locations of the current transformers. This comparison may be achieved by direct hard-wired connections or may be achieved via a communications link. However certain protection systems derive their ‘restricted’ property from the configuration of the power system and may be classed as unit protection. The restricted earth fault protection may be applied to the mentioned high voltage winding of station transformer as illustrated below. Whichever method is used, it must be kept in mind that selectivity is not merely a matter of relay design. It also depends on the correct coordination of current transformers and relays with a suitable choice of relay settings, taking into account the possible range of such variables as fault currents, maximum load current, system impedances and other related factors, where appropriate. 
The degree of protection is very much improved by the application of restricted earth fault protection (or REF protection). This is a unit protection scheme for one winding of the transformer. It can be of the high impedance type as shown in Figure above, or of the biased low impedance type. For the high-impedance type, the residual current of three line current transformers is balanced against the output of a current transformer in the neutral conductor. In the biased low-impedance version, the three phase currents and the neutral current become the bias inputs to a differential element. The system is operative for faults within the region between current transformers, that is, for faults on the star winding in question. The system will remain stable for all faults outside this zone. The gain in protection performance comes not only from using an instantaneous relay with a low setting, but also because the whole fault current is measured, not merely the transformed component in the HV primary winding (if the star winding is a secondary winding). Hence, although the prospective current level decreases as fault positions progressively nearer the neutral end of the winding are considered, the square law which controls the primary line current is not applicable, and with a low effective setting, a large percentage of the winding can be covered. Restricted earth fault protection is often applied even when the neutral is solidly earthed. Since fault current then remains at a high value even to the last turn of the winding, virtually complete cover for earth faults is obtained. This is an improvement compared with the performance of systems that do not measure the neutral conductor current. Earth fault protection applied to a delta-connected or unearthed star winding is inherently restricted, since no zero sequence components can be transmitted through the transformer to the other windings. Both windings of a transformer can be protected separately with restricted earth fault protection, thereby providing high-speed protection against earth faults for the whole transformer with relatively simple equipment. A high impedance relay is used, giving fast operation and phase fault stability.