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The traditional energy structure of our country is single and the environmental pollution is serious. To a certain extent, it impeded the sustainable economic and social development of China. With the energy problems increasing seriousness, distributed generation growing is growing a wide range of applications for the merits of small investment, environmental protection, clean, reliable power supply and flexible generation manner, and so on. However, a large number of distributed power poured into the grid change the grid's structure increase the randomness of system running, and impede the power system seriously. This paper introduces the definition, types and technical characteristics of distributed generation technology, and analyzes the impacts on various aspects of power system, finally, points out the research directions of DG.