In the recent years the electrical power utilities are undergoing rapid restructuring process worldwide. Indeed, with deregulation, advancement in technologies and concern about the environmental impacts, competition is particularly fostered in the generation side thus allowing increased interconnection of generating units to the utility networks. These generating sources are called as distributed generators (DG) and defined as the plant which is directly connected to distribution network and is not centrally planned and dispatched. These are also called as embedded or dispersed generation units