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Benefited from the interactivity and flexibility of Smart Grids, various dynamic lightning protection methods become available. A System-level lightning protection mode named Dynamic Lightning Protection is presented in the paper. Combined with real time lightning tracking and warning, a Dynamic Lightning Protection System carries out preventive protection actions during the lightning storms. It results in minimizing the impacts of lightning-caused disturbances, trips and interruptions, and improving the robustness of a Smart Grid transmission system.