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We report on the development of an uninterruptible power supply system with distributed generators (DGs), which balance load demand and output of DGs, and also provides a high quality power supply. We studied the architecture of the system, and built a demonstration system. This system includes a 50-kW bi-directional converter, a 10-kW photovoltaic (PV) panel, PV converter, and VRLA batteries. We set up two sets of the system at the AIT Yakusa campus in Aichi Prefecture. The system operated smoothly and measurements showed it improved the quality of the power supply.