In this paper a local generation system (LGS) based on an induction generator (IG) is presented. The IG supplies the active power to the system with the support of a voltage source converter (VSC) for power conditioning. With the LGS connected to the grid through coupling inductors the deficit or the excess of power production of the IG is imported or exported to the grid at unity power factor. In autonomous operation of the LGS a buck converter, bi-directional boost converter and battery set are connected at the DC terminals of the VSC to control the DC bus voltage and supplying power to the local load at constant voltage frequency and amplitude. The LGS propose include an active islanding detection method, battery charge function and a procedure to reconnect the LGS with the grid after the voltage is reestablished. © 2008 IEEE. 885891Quadros Machado, R., Busso, S., Antenor Pomilio, J., A Line-Interactive Single-Phase to Three-Phase Converter System (2006) IEEE Transaction on Power Electronics, 21 (6), pp. 1628-1636. , NovemberMachado, R.Q., Buso, S., Pomilio, J.A., Marafão, F.P., Threephase to single-phase direct connection for rural co-generation systems, in Proc (2004) IEEE APEC, pp. 753-758. , FebMarra, E.G., Pomilio, J.A., Self-Excited Induction Generator Controlled by a VS-PWM Bi-directional Converter for Rural Application (1999) IEEE Transaction on Industry Applications, 35 (4), pp. 877-883. , July/AugustMarra, E.G., Pomilio, J.A., Induction-Generator-Based System Providing Regulated Voltage with Constant Frequency (2000) IEEE Transaction on Industrial Electronics, 47 (4), pp. 908-914. , AugustWu, J.-C., Jou, H.-L., Simplified control method for the singlephase active power filter (1996) IEE Proc.-Electr. Power Appl, 143 (3), pp. 219-224. , MayMattavelli, P., Synchronous-Frame Harmonic Control for High-Performance AC Power Supplies (2001) IEEE Transaction on Industry Applications, 37 (3), pp. 864-872. , May/JuneTeodorescu, R., Blaabjerg, F., Liserre, M., Loh, P.C., Proportionalresonant controllers and filters for grid-connected voltage-source converters (2006) IEE Proc.-Electr. Power Appl, 153 (5), pp. 750-762. , SeptemberZ. Ye, R. Walling, L. Garces, R. Zhou, L. Li, and T. Wang, Study and Development of Anti Islanding Control for Grid-Connected Inverters, National Renewable Energy Laboratory (NREL/SR - 560-36243), May 2004Hernandez-Gonzalez, G., Iravani, R., Current Injection for Active Islanding Detection of Electronically-Interfaced Distributed Resources (2006) IEEE Transaction on Power Delivery, 21 (3), pp. 1698-1705. , JulyYe, Z., Kolwalkar, A., Zhang, Y., Du, P., Walling, R., Evaluation of Anti-Islanding Schemes Base on No detection Zone Concept (2004) IEEE Transactions on Power Electronics, 19 (5), pp. 1171-1176. , SeptemberJeraputra, C., Enjeti, P.N., Development of Robust anti-Islanding Algorithm for Utility Interconnection of distributed fuel cell power generation (2004) IEEE Transactions on Power Electronics, 19 (5), pp. 1163-1170. , SeptemberBlaabjerg, F., Teodorescu, R., Liserre, M., Timbus, A.V., Overview of Control and Grid Synchronization for Distributed Power Generation Systems (2006) IEEE Transaction on Industrial Electronics, 53 (5), pp. 1398-1409. , OctoberTeodorescu, R., Blaabjerg, F., Flexible Control of Small Wind Turbines With Grid Failure Detection Operating in Stand-Alone and Grid-Connected Mode (2004) IEEE Transactions on Power Electronics, 19 (5), pp. 1323-1332. , SeptemberLi, Y., Vilathgamuwa, D.M., Loh, P.C., Design, Analysis, and Real-Time Testing of a Controller for Multibus Microgrid System (2004) IEEE Transactions on power electronics, 19 (5), pp. 1195-1203. , SeptemberMarafão, F.P., Deckmann, S.M., Luna, E.K., A Novel Frequency and Positive Sequence Detector for Utility Applications and Power Quality Analysis (2004) International Conference on Renewable Energy and Power Quality (ICREPQ)