This paper investigates the effect of the Distributed Generation (DG) on power quality pointing out its positive and negative impacts. To support this argument, simulations are achieved on Electromagnetic transients and DC/Power system computer-aided design (EMTDC/PSCAD), where the results reveal the effect of DG on power quality. An overview of DG is presented covering the definition, the different technologies, as well as the major factors that contribute to the renewed interest in DG. There are different ways to connect the distributed generation to the utility system. The different ways for interface with the utility system are also exploded. The introduction of DG to the distribution system will have a significant impact on the flow of power and voltage conditions at the customers and utility equipment. The positive impacts of the DG are pointed out and some of the operating conflicts that might arise are discussed.
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