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This paper deals with an implementation of an electronic load controller (ELC) using a digital signal processor (DSP) for regulating the voltage and frequency of an offgrid induction generator system (IG) that can supply electricity in remote areas of countries with high year-round rainfall. The proposed generating system consists of IG, ELC and nonlinear consumer loads. The ELC is combination of three-leg VSC with a dc link capacitor, a chopper and an auxiliary load at its dc bus. It regulates voltage and frequency of the small hydro plant, Besides this the ELC balances the IG system under unbalanced loading conditions and eliminates the harmonics of the loads thereby acting both as a load leveler and a harmonic eliminator. The proposed IG along with its ELC is implemented on a 3.7kW IAG system using a DSP.