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A grid connected power generation scheme using a 3-Φ self-excited induction generator (SEIG) in conjunction with current controlled voltage source inverter (CC-VSI) is proposed The analysis employs two PI controllers and one hysteresis current controller to control the stator terminal voltage and frequency of an IG. This paper also presents the reason for variation in magnetizing inductance Lm and its effect on the self-excitation process during transient condition. Simulation studies of the proposed system are carried out using Matlab/Simulink. Results obtained are presented illustrating the good control performance of the system.