Fault location, isolation and self-restoration (FLISR) automation is an essential component of smart grids concept. It consists of a high level of comprehensive automation and monitoring of the distribution grid improving the quality of energy supplied to customers. This paper presents an algorithm for decentralized FLISR architecture with peer-to-peer communication using IEC 61860 GOOSE messages. An analysis of short circuit detection was presented due to the method of the grid earthing system. The proposed automation model was built based on communication logic between configured intelligent electronic devices (IED) from ABB and Siemens. The laboratory tests were conducted in a half-loop grid model with a bilateral power supply (typical urban grid). The laboratory research concerned three locations of short circuits: between substation and section point, between two section points and between section point and normally open point (NOP). The logic implementation was developed using State Sequencer software offered by Test Universe.
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