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This paper presents the analysis of dynamic and steady state performance of a self excited induction generator (SEIG) with digitally controlled electronic load controller (ELC) feeding single phase loads. The excitation capacitors, electronic load controller, 1-phase load in conjunction with the d-q model of the 3-phase induction machine taking into account the saturation effect are used to predict the dynamic behavior of the SEIG. The digital control is realized by means of PIC18F252 microcontroller which provides a better performance with increased operational flexibility. Both simulation and hardware results have been presented for the digitally controlled ELC, which is more compact, reliable and cost effective for providing effective voltage regulation for field applications.