The increasing costs and stringent environmental regulations are making the construction of large power stations to meet rising energy demands economically unfeasible. Hence, Embedded Generation (EG) is predicted to play a prominent role in the electric power systems of the future. The term 'embedded generation' refers to electricity generation connected at distribution level rather than transmission level. The insertion of EGs presents a new set of conditions to distribution networks. The aim of this paper is to conduct a voltage stability analysis using an iterative power system simulation package, PowerWorld (TM) Simulator, to evaluate the impact of strategically placed EG on distribution systems with respect to the critical voltage variations and collapse margins. This paper concludes with the discussion of EG's excellent options for system reactive power compensation and voltage stability
