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The global demand for energy is increasing at a breathtaking pace. This sharp increase in world energy demand will require significant investment in new power generating capacity and grid infrastructure. Considering the present energy scenario and the degrading environmental conditions, distributed generation seems to be a promising option. Distributed Generation generally refers to small-scale electric power generators that produce electricity at a site close to customers or that are tied to an electric distribution system. The power grid is currently facing tremendous changes in the way the energy is produced, transmitted and consumed. The increasing number of actors and the demand for more and more complex services to be provided by the grid exceed the capabilities of today's control systems. This paper gives an overview of the changes that the power system is undergoing and how these affect the aspects of communication, ancillary services, voltage regulation and losses and harmonics.