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This research proposes an improved finite control set direct power model predictive control method (FCS-DPMPC) for grid-tie distributed generation (DG). FCS-DPMPC predicts the system outcomes using the system model. During the next sampling time, a voltage vector is defined using the cost function to minimize the power ripple, consequently allowing flexibility for power regulation. Furthermore, the impact of implementing a one-step delay is studied and compensated through a model forecast pattern. In addition, a new two-step horizon technique has been developed to minimize switching frequency and computation burden. Simulation results for single DG and parallel operated DGs in a grid-tie manner confirm the effectiveness of the suggested control strategy, which signifies that this is an appropriate approach for distributed generation in microgrids.