Abstract: A microturbine power generation system includes an electrical generator, a turbine, a compressor and a combustor. Hot expanding gases leaving the combustor are expanded by the turbine. The resulting turbine power is used for driving the compressor and the electrical generator. A recuperator recovers heat from a turbine exhaust stream and raises the temperature of compressed air prior to combustion. Fluid injection is accomplished in the system by using one or more nozzles to spray small fluid droplets, on the order of hundreds of microns or less in diameter, into the combustion air either upstream or downstream of the compressor, or both. The evaporative effect of the injected fluid is used to cool the generator components and to increase the effectiveness of the recuperator. The injected fluid also adds mass to the hot, expanding gases entering the turbine.