Key issues for distributed generation (DG) inclusion in a distribution system include operation, control, protection, harmonics, and transients. This paper analyzes two of the main issues: operation and control for DG installation. Inclusion of DG in distribution networks has the potential to adversely affect the control of voltage. Both DG and tap changers aim to improve voltage profile of the network, and hence they can interact causing unstable operation or increased losses. Simulations show that a fast responding DG with appropriate voltage references is capable of reduction of such problems in the network. A DG control model is developed based on voltage sensitivity of lines and evaluated on a single wire earth return (SWER) system. An investigation of voltage interaction between DG controllers is conducted and interaction-index is developed to predict the degree of interaction. From the simulation it is found that the best power factor for DG injection to achieve voltage correction becomes higher for high resistance lines. A drastic reduction in power losses can be achieved in SWER systems if DG is installed. Multiple DG can aid voltage profile of feeder and should provide higher reliability. Setting the voltage references of separate DGs can provide a graduated response to voltage correction. �� 2004 IEEE.