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As mentioned, the adiabatic equation assumes no heat is dissipated from the cable during a fault.  While putting the calculation on the safe side, in some situations, particularly for longer fault duration there is the potential to be able to get away with a smaller cross section.  In these instances, it is possible to do a more accurate calculation.

Considering non-adiabatic effects is more complex.  Unless there is some driver, using the adiabatic equations is just easier.  Software is available to consider non adiabatic effects, however, there is a cost, time and complexity associated with this.

The IEC also publish a standard which deals with non-adiabatic equations:

• IEC 60949 "Calculation of thermally permissible short-circuit current, taking into account non-adiabatic heating effects".

The method adopted by IEC 60949 is to use the adiabatic equation and apply a factor to cater for the non-adiabatic effects:

$I=ε I AD$

where I - permissible short circuit current, A (or kA)
ε - factor to allow for heat dissipation from cable

The bulk of the IEC 60949 standard is concerned with the calculation of ε.