Hi friend
When a diesel engine used as prime mover to rotate generator for power generation is called diesel generator. Basically it is a small unit easily movable. In large scale diesel generator is not economical.
Mainly diesel generator used as
a) Peaking plant,
b) Emergency power supply of a large power plant
c) Initial power supply of starting power plant
d) Mobile power generator for emergency crisis of power.
e) Emergency power supply in industrial area. etc.
Diesel generator may be internal or external combustion engine. But mostly used internal combustion engine.
Thanks all.