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Fault/short circuit current is the available current from the source when a short circuit occurs. It is the maximum current the source can provide, defined as an RMS value, usually without any DC offset.

Surge current is the maximum instantaneous current that is drawn by "turning on" or energizing a device such as a motor or transformer.

Surge current will be less than fault current. If you assume a very strong source relative to the device rating, the surge current will be solely dependent upon the device in question (so fault current and surge current have no intrinsic connection). For a transformer, inrush may be 5-7 times the self cooled full load rating. Motors are usually less than this, and depending on the starting technique and configuration can be little (20-50%) over full load rating.

From these definitions, and the above paragraph, it should be clear that if you have a weak source relative to the device, the device may not be able to draw as much current as it would if connected to a stronger system. If this occurs, the voltage will dip.

An example would be a system where the available short circuit power is 600MVA; A 60MVA transformer is connected to this system bus. Energizing this transformer without any sort of controled closing could result in (7) x 60MVA = ~420MVA on inrush. This is relatively close to the available short circuit power (70%), so you can expect the system voltage to dip as a result. If the available short circuit current was around 20,000MVA, energizing such a transformer would not cause any significant system voltage dip.

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