The generator neutral out is earthed for attaining two
targets. (1) for a getting zero potential in neutral and hence balanced voltage
(2) for benefiting a return path, so that overload or earth leakage could be
sensed and to protect.
The neutral link is provided because to isolate the earthing
in case of testing or so.
CT for EFR is kept after NL
CT for REF is kept before NL
If the arrangement (2) is correct, I believe EFR-CT could sense
the earth (leakage) current and REF-CT could sense the residual current in
between neutral & earth. But, by the arrangement (2) if any loose contact
with NL, voltage unbalancing may occur. So, many prefer (1), if REF is not
there.
Please discuss.