AbstractService unavailability of transmission lines, due to the direct and indirect lightning strikes, is evaluated as a challenging issue within electric companies. The lightning event can produce dangerous overvoltage, equipment failures, and power supply interruptions. Here, externally gapped line arresters (EGLAs) performances installed on a 63 kV transmission line are modelled using EMTP‐ATP to investigate their capability to withstand current and energy discharged by lightning strokes during back flashover phenomena. Frequency behaviour of the grounding system impedance, first and subsequent lightning current parameters effects on insulators back flashover and lightning flashover failure rate have been considered by Monte‐Carlo method. Then, extensive analysis has been carried out to study the absorbed energy of the EGLA and its expected life. The results show the dependency of failure rate and the EGLA expected life on the soil resistivity and lightning strike parameters. The selected EGLA must be provided sufficient lightning protection to the transmission line based on its absorbed energy capability, the soil and lightning parameters and be complied with the discharge energy capability requirement specified by the utility company.