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An induction generator or asynchronous generator is a type of alternating current (AC) electrical generator that uses the principles of induction motors to produce electric power. Induction generators operate by mechanically turning their rotors faster than synchronous speed. A regular AC induction motor usually can be used as a generator, without any internal modifications. Because they can recover energy with relatively simple controls, induction generators are useful in applications such as mini hydro power plants, wind turbines, or in reducing high-pressure gas streams to lower pressure.
An induction generator draws reactive excitation current from an external source. Induction generators have an AC rotor and cannot bootstrap using residual magnetization to black start a de-energized distribution system as synchronous machines do. Power factor correcting capacitors can be added externally to neutralize a constant amount of the variable reactive excitation current. After starting, an induction generator can use a capacitor bank to produce reactive excitation current, but the isolated power system's voltage and frequency are not self-regulating and destabilize readily.