Someone Fthed up and under rated or ordered the wrong parts, get something thats rated for what your working with & see what the operating tolerances +/- are to factor in.
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MCOV is calculated based on the maximum system voltage and adding a factor over it.
In this case 245kV is the maximum system voltage for 220kV system. Since LA is connected between Phase and Ground, the maximum voltage that appears is 245/1.732 = 141.5kV, with a safety factor of 10% required MCOV comes to 155.6kV. Thus, MCOV of 165kV translates in to 115% of max voltage that can appear across the LA and thus is more than adequate.
Only power systems which are ineffectively earthed need to have higher MCOV.