During recent decades with the power system restructuring process, centralized energy sources are being replaced with decentralized ones. This phenomenon has resulted in a novel concept in electric power systems, particularly in distribution systems, known as Distributed Generation (DG). On one hand, utilizing DG is important for secure power generation and reducing power losses. On the other hand, widespread use of such technologies introduces new challenges to power systems such as their optimal location, protection devices' settings, voltage regulation, and Power Quality (PQ) issues. Another key point which needs to be considered relates to specific DG technologies based on Renewable Energy Sources (RESs), such as wind and solar, due to their uncertain power generation. In this regard, this paper provides a comprehensive review of different types of DG and investigates the newly emerging challenges arising in the presence of DG in electrical grids.

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