In recent years, due to the shrinking energy resources facing mankind, the increased demand for more energy and the protection of environment, have led to intensive search for environment-friendly ways of energy production. Special attention has been paid to renewable, alternative and waste energy sources as a possible way of electric power production in Disperse Power Plants (DPP). The research in electromechanical energy conversion systems resulted new, highly efficient and ultra high speed machines that are applicable in small scale Turbine-Generator (T-G) systems. The application of ultrahigh speed induction generators (IG) has a number of technical and economical benefits over standard SGs. Here, a controlled self-excitation method for specially designed ultrahigh speed IG used in a small scale T-G system is described and studied. It can be applied in supplying telecommunication stations and data centers in DPPs. The design and analysis of the system are relied on computer simulation techniques verified by test results.