If an Induction Motor is driven above Synchronous Sp eed it will absorb reactive power and deliver active power to the System,with slip of about- 0.05 at full load. and needs no excitation, Speed governing for control of voltage and fre guency. The cage induction machine can be Self-excited by connecting an appropriate value of Capacitance across its stator terminals . However, it Cannot be used as a satisfactory generator unless it is used in Coniuction with a Correctly tuned Controller which regulates the voltage, freguency and turbine speed by controlling the flow of power into dump loads in a manner which minimizes electrical harmonics & Radio interference. in situations where bad load Conditions, Capacitor Controlisalso implemented & for improvement of controlaction in conventional Electronic load controller the application of Model reference adaptive Control has been investigated.