ENVIRONMENTAL FACTORS FOR HYDRO-POWER GENERATION4generator converts this mechanical energy into electricity. The operation of a generator is basedon the principles discovered by Faraday. He found that when a magnet is moved past aconductor, it causes electricity to flow. In a large generator, electromagnets are made bycirculating direct current through loops of wire wound around stacks of magnetic steellamination. These are called field poles, and are mounted on the perimeter of the rotor. The rotor is attached to the turbine shaft, and rotates at a fixed speed. When the rotor turns, itcauses the field poles (the electromagnets) to move past the conductors mounted in the stator.This, in turn, causes electricity to flow and a voltage to develop at the generator outputterminals.The advantages of Hydroelectric Power Plant are water to run the power plant isprovided free by nature, fuel is not burned so there is minimal pollution, hydro power plays amajor role in reducing greenhouse gas emissions, relatively low operations and maintenancecosts.The disadvantages are high investment cost. In some cases, inundation of land and wildlifehabitat, loss or modification of fish habitat, fish entrainment or passage restriction, changes inreservoirs and stream water quality, displacement of local populations. Micro Grid (MG) is a small network of power generators to transform the electricity network in the way that the internet changed distributed communication. The Micro Grid formed from the renewable energy resources. The efficiency of a standalone Micro Grid in reliability and economy as well as environment was assessed. The environment efficiency was evaluated considering the amount of CO2 discharge that was reduced by using installed MG power system renewable energy.