The world-wide move to deregulation of the electricity and other energy markets, concerns about the environment, and advances in renewable and high efficiency technologies has led to major emphasis being placed on the use of small power generation units in a variety of forms. The paper reviews the position of distributed generation (DG, as these small units are called in comparison with central power plants) with respect to the installation and interconnection of such units with the classical grid infrastructure. In particular, the status of technical standards both in Europe and USA, possible ways to improve the interconnection situation, and also the need for decisions that provide a satisfactory position for the network operator (who remains responsible for the grid, its operation, maintenance and investment plans) are addressed.