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INTRODUCTION hen considering a high penetration of Distributed Generation (DG), the decision to disconnect DG when islanding occurs is not appropriate. Ideally, the utility shall fully utilize the DG to supply the load in the islanded system. However, without a proper coordination and control of an islanding operation, the idea to implement islanding poses risks and hazards to the island and the grid. This requires a  distribution system so called ‘Smart Grid’ comprising monitoring, control, analysis and communications capabilities to achieve a seamless and synchronized islanded operation. Advanced technologies together with fast and This work is supported by the University of Malaya (e.science fund:.106. 01.03.SF0562) and the University of Technology MARA, Malaysia. H. Mohamad is with the Faculty of Electrical Engineering, University of Technology MARA, Malaysia.( e.mail:hasmaini@hotmail.com) A.H.Abu Bakar is with the Centre of Research UMPEDAC, Department of Electrical Engineering, Faculty of Engineering, University of Malaya,Kuala Lumpur, Malaysia (e.mail:a.halim@um.edu.my) H.W.Ping is with the Centre of Research UMPEDAC, Department of Electrical Engineering, Faculty of Engineering, University of Malaya,Kuala Lumpur, Malaysia (e.mail:wphew@um.edu.my) H.Mokhlis is with the the Centre of Research UMPEDAC, Department of Electrical Engineering, Faculty of Engineering, University of Malaya,Malaysia (e.mail:hazli@um.edu.my) reliable communication systems incorporate into the distribution system could facilitate automation control between the DG and the grid. It also will help to establish synchronization during grid reconnection. Many of the publications have discussed on the intentional islanding operations. With an appropriate controller designs to operate in two operation modes i.e.grid connected and islanding a planned/intentional islanding operation is feasible [1.9]. During grid connected mode of operation, active power, P and reactive power, Q are controlled whereas during islanding operation mode, Voltage,V and frequency,f are controlled[2.3, 10] . The complexity of the controller design would vary with the type of generator used (rotating and inverter type). For multiple numbers of DGs and mix types of DGs in the island, different controller algorithm is needed which obviously needs a fast and reliable communication means to communicate with each other [4, 11.14]. Load sharing techniques are also required to stabilize the islanding operation[15]. Islanding operation is commonly simulated due to a fault at a point of common coupling (PCC) which leads to the opening of associate circuit breaker. Besides, islanding also may be formed due to the opening of circuit breaker when a cable fault occurs at any load feeder feeding by the power station. Thus, there is a possibility of having several islanding areas with different amount of loads connected to it. This contributes to a different power imbalance during transient response hence requires an advance governor controller to cope with the uncertainty of the speed response. The corresponding controller designed for the islanding operation having different islanding area is proposed in this paper. The controller would intelligently make decisions to perform significant tasks considering the information or data signal received from the grid and island. The tasks include identifying the islanding operation area, issuing transfer trip to breakers, issuing load shedding scheme or dynamic breaking and most importantly sustaining the operation of the island within the acceptable operation limit. In Malaysia, most of the existing and on.going small scale generation units in distribution network come from hydro power stations which using induction and synchronous type of DG. Currently, the DG’s controller is not yet equipped with any islanding operation strategy. Thus, in this paper, a planned islanding operation considering existing Malaysia’ distribution network that consists of two small units of hydro generation connected in parallel to the grid is discussed. The islanding operation study is simulated using the PSCAD/EMTDC simulation tool. The proposed controller is applied to the islanding operation and the feasibility studies An Adaptive Controller of Hydro Generators for Smart Grid Application in Malaysia H.Mohamad,  , A.H.Abu Bakar,   H.W.Ping,  H.Mokhlis,   W 2010 International Conference on Power System Technology 978-1-4244-5940-7/10/$26.00©2010 IEEE