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An induction generator is a type of electrical generator that is mechanically and electrically similar to a polyphase induction motor. Induction generators produce electrical power when their shaft is rotated faster than the synchronous frequency of the equivalent induction motor. Induction generators are often used in wind turbines and some micro hydro installations due to their ability to produce useful power at varying rotor speeds. Induction generators are mechanically and electrically simpler than other generator types. They are also more rugged, requiring no brushes or commutators.

Induction generators are not self-exciting, meaning they require an external supply to produce a rotating magnetic flux. The external supply can be supplied from the electrical grid or from the generator itself, once it starts producing power. The rotating magnetic flux from the stator induces currents in the rotor, which also produces a magnetic field. If the rotor turns slower than the rate of the rotating flux, the machine acts like an induction motor. If the rotor is turned faster, it acts like a generator, producing power at the synchronous frequency.

In induction generators the magnetising flux is established by a capacitor bank connected to the machine in case of stand alone system and in case of grid connection it draws magnetising current from the grid. It is mostly suitable for wind generating stations as in this case speed is always a variable factor.

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