Fault currents need to be managed to avoid what issue?

Managing fault currents is crucial primarily to prevent the overheating of conductors. When a fault occurs, such as a short circuit, the current can significantly exceed the normal operating levels. This excess current generates excessive heat in conductors due to the resistive losses (I²R losses), which can lead to insulation breakdown, damage to equipment, and, ultimately, a potential fire hazard.

Overheating can compromise the integrity of the electrical system, causing failures that might require extensive repairs or replacements, and can pose safety risks to personnel and property. Therefore, effective management of fault currents through devices such as circuit breakers, fuses, and protective relays is essential to ensure the safety and reliability of electrical installations.