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Induction generator works on the principle of "Faraday's Law of Electromagnetic Induction" which states that when supply is provided to stator, then magnetic flux is produced in it that links with the rotor and induced current in it which rotate the rotor in this way torque is produced in it. The direction of induced torque and current is opposite of that in induction motor.
Application:
Used in windmills and where energy is to recover.
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