Incentives, such as the Feed-in-tariff are expected to lead to continuous increase in the deployment of Small Scale Embedded Generation (SSEG) in the distribution network. Self-Excited Induction Generators (SEIG) represent a significant segment of potential SSEG. The quality of SEIG output voltage magnitude and frequency is investigated in this paper to support the SEIG operation for different network operating conditions. The dynamic behaviour of the SEIG resulting from disconnection, reconnection from/to the grid and potential operation in islanding mode is studied in detail. The local load and reactive power supply are the key factors that determine the SEIG performance, as they have significant influence on the voltage and frequency change after disconnection from the grid. Hence, the aim of this work is to identify the optimum combination of the reactive power supply (essential for self excitation of the SEIG) and the active load (essential for balancing power generation and demand). This is required in order to support the SEIG operation after disconnection from the grid, during islanding and reconnection to the grid. The results show that the generator voltage and speed (frequency) can be controlled and maintained within the statuary limits. This will enable safe disconnection and reconnection of the SEIG from/to the grid and makes it easier to operate in islanding mode.