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Distributed Generation (DG) is predicted to play an important role in the electric power system in the near future. It is widely accepted that microturbine-generation systems are currently attracting lot of attention to meet users' need in the distributed generation market. In order to gain the benefits of interconnected operation of microturbine generation system (MTG) system with the utility network, their effective modeling and performance analysis are required. This paper presents the recent research efforts in accurate modeling of MTG System and the investigation on various issues related to their interconnected operation and control with the distribution network.