A power generation system is provided. The system includes a prime mover for transforming a first energy to a second energy. The system also includes an induction generator operatively coupled to the prime mover and configured to generate electrical power using the second energy. The system further includes an inverter electrically coupled to the induction generator for controlling a terminal voltage of the induction generator during a grid-loss condition. The system also includes a power dissipating device operatively coupled to the inverter for dissipating power generated by the induction generator during the grid-loss condition.