Abstract
Recently squirrel cage induction generator has been steadily applied to many small hydro power plants. Induction generator needs a reactive power for magnetization. The reactive power of induction generator is being supplied from the supply side mostly. The use of induction generators in the power distribution grid can affect the power factor. The power factor of induction generator is fixed already during production. The power factor in the distribution system is due to the increase or decrease of the load rather than due to the induction generator. In this study, we analyzed that how the increase or decrease of D/L load impacts at the change of power factor and power flow.