The purpose of Surge Arresters is to protect the substation equipment. Main equipment is usually the Power Transformer, therefore the proper arrester location should be nearest to the transformer. Arrester will drain surges and the wave profiles along the substation will have suitable values according to the designed insulation. In this way, all the substation equipment could be protected with one arrester, however if substation is big, wave profiles along the substation up to entrance lines will not be totally protected and one set of surge arresters at each line entrance will be necessary.
There is a simplified formula, which provides an estimated valued of the zone protected by one surge arrester, which provides the length of the arrester connection. But EMTP Electromagnetic Transient Program or ATP Program should do the proper calculation.
On the other hand, the main characteristics of Surge Arresters are the Maximum Continuos Operating Voltage and the Maximum Residual Voltage for Impulse Wave & Switching Surge. These last values are for Insulation Coordination purpose. But one important characteristic is Line Discharge Class, which depends of the length of transmission lines connected to the substation. IEC standard indicates five types (1 to 5). This characteristic should be specified because indicates the energy dissipation capability of the arrester.