Nowadays, interest in generating electricity using decentralized generators of relatively small scale ('distributed generation', DG) is increasing. This work deals with the impact of implementing DG on the transmission system transient stability, with the emphasis on a potential transition from a 'vertical power system' to a 'horizontal power system. A problem in power systems is maintaining synchronous operation of all (centralized) synchronous machines. This stability problem associated is called rotor angle stability. In this work, the impact of the DG implementation on this is investigated. The impact of DG levels on the system transient stability when the increasing DG level is followed by a reduction of centralized generators in service resulting in a 'vertical to horizontal' transformation of the power system is also investigated. Furthermore, a stochastic analysis is used to study the transient stability of the power systems. The results show that including the stochastic behavior of DG leads to a more complete and detailed view of the system performance. Finally, the situation when the power system is pushed towards a scenario, where DG penetration reaches a level that covers the total load of the original power system (100% DG level) is investigated. The research performed in this work indicates that from the transmission system stability point of view, if higher DG penetration levels are coming up, sufficient inertia and voltage support must be installed. Furthermore, one should be aware of the fact that the system behaves stochastically, especially with DG. To a certain extent regional balancing of power can be performed by local voltage control.