Nowadays the number of dispersed generators (DGs) is growing rapidly. This change will greatly influence power system dynamics. A distribution network, where DGs are connected to the grid, cannot be considered as passive anymore. Therefore, in the future it will not be possible to use simple equivalents of distribution networks for power system dynamic modelling, as it was done before. At the same time, the whole power system cannot generally be represented in a detailed manner for dynamic studies because of huge system dimension. Therefore special techniques have to be applied for aggregation and order-reduction of distribution networks with DG. A brief review of existing techniques is provided here, and the dynamic reduction using Hankel norm approximation is performed for a 10 kV distribution network, which includes DG of different types.