When the single phase intermittent earth fault occurs, it is instantaneous and the ground current is small, which make the fault difficult to be identified. This paper analyzes the reason that the traditional inverse-time overcurrent protection and even three-section current protection can not operate correctly and the possible severe consequences caused by the fault. This paper analyses the circuit caused by the fault by both simulation and record of the fault disturbance recorder. Then, a solution combined the “dynamic increment” criterion based on the characteristics of the circuit and the energy management system is presented to identify and clear the fault. The solution improves the reliability of the power system with neutral grounding via low resistance.