Due to the increasing loads of the power system and accordingly the connection of new sources of electricity to the system, there is an overall increase in the value of the short-circuit currents, which adversely affects the installed electrical equipment of the power system. In order to avoid large costs due to the replacement of electrical equipment (mostly protective equipment, e.g. breakers), short-circut current reduction devices (fault current limiters - FCL's) are introduced. This paper describes FCL's whose task when short-circuit occurs is to reduce the short-circuit current to a certain required value. The power system is briefly described in the introductory part of the paper and various solutions offered in the world for reducing short-circuit currents are mentioned. The general idea of FCL operation is explained in more detail, and the possible places for the installation of the device in the network are described. Also, the interaction between the system and the device is described and different types of testing of the correctness of the device itself are mentioned. Types of FCL's are presented in a separate chapter, and for certain types of devices, their principles of operation are briefly described. Great attention was paid to the development of the FCL model and to the description of its principle of operation within the Simulink program, which is an integral part of the Matlab software package. In the end, the obtained results of the simulation of the impact of connecting the FCL model to the transmission network of the city of Zagreb within Simulink were commented.