This document discusses distributed generation and the smart grid environment. It provides an introduction to the need for changes in energy generation, delivery, and use to establish sustainability and restore environmental balance. The document then discusses different forms of renewable energy sources and distributed generation. It describes some of the challenges of distributed generation and how a smart grid can help solve these issues. Finally, it discusses components of the smart grid like advanced metering infrastructure and phasor measurement units, and the benefits of integrating distributed generation with the smart grid.