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A novel wide area backup protection algorithm to identify fault branch based on the fault steady state component is proposed. Under normal conditions of the power system, subsets of buses called protection correlation regions (PCRs) are formed on the basis of the network topology and phasor measurement unit (PMU) placement. After the fault occurs, by analyzing the fault steady state component of differential current in each PCR, the fault correlation region is confirmed and then a fault correlation factor (FCF), is calculated in real time to locate the fault branch. The simulation results for the 10-generator 39-bus system verify that this method is able to easily identify fault branch with limited measurement points.