It has been recognized recently that when injecting renewable energy source power to a load bus which connected to a distributed feeder in a power grid system, a stability problem occurs particularly when having high fault duties that exceeding the circuit breaker ratings at some substations. In this paper an analysis of power flow, short circuit, stability and protection is given in detail to an example of limited 7-bus power grid system. Comparison is illustrated between power grid with and without distributed generators regarding bus voltages, fault currents, critical power angles, selected current transformers and over current relay settings in each bus.