jghrist,
Read this paper:
(By the way, there is some good info at the SEL-site:
)
Now to answer some of your questions:
The amount of winding unprotected by transformer differential is low (is any unprotected?) with solid grounding.
It depends on the differential setting.
10% diff-setting = protect 58% of the winding
20% diff setting = protect 41% of the winding
30% diff setting = protect 28% of the winding
40% diff setting = protect 17% of the winding
With REF-protection you can protect up to 90% of the winding. REF-schemes protect transformers especially against earth-faults near the neutral-point. From a HV phase-view this current can be very low (too low for an overcurrent relay), but if seen from the neutral, the current can be very high. (faulty winding acts like an autotransformer)
With REF being essentially free on modern relays, should we start applying the protection?
I can't see why not. If you can apply diff-protection, why not one additional CT for REF-protection also? That is if you have a relay with all these functions. If not, I would not add it, (for a distribution transformer anyway) but it depends on the size of the unit and the availability of a new unit, if the old one fails. Normally distribution transformers are easily obtainable, so one can replace a failed unit fairly easy.
How much danger is there of through fault instability due to CT saturation?
On this one I am not sure. Maybe someone else in this forum can answer this, but I think the possibility is higher than high-impedance REF-schemes.
Would it compromise the REF protection to use the neutral CT for both overcurrent and REF?
In some of the relays you can use only one CT in the neutral for ground overcurrent protection (we call it standby earth fault protection) and REF-protection. You can even use just three CTs on each side of the transformer (total of six) to do metering, overcurrent protection and differential protection. However, in my opinion, it is not a good idea. If, for some reason, you loose the relay, you have no protection at all. I would use more than one relay to do all the functions.
Regards
Ralph