SCM CT is a normal CT which is connected in two phase of the turbines & its terminals are connected to the AVR. Depending on the load on the turbine the current increases & accordingly it gives the input to the AVR so as to develop the required field to generate the same load without any dip in the voltage.
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Click the link. There you can figure the size generator you need.
generator lockout relay is a relay that the output of other relays energize this relay and its out put use for tripping of generator. this relay must be reset manually
A function generator is a piece of electronic test equipment. Its main use is to generate electrical waveforms.
use of CT
Converting D/C into A/C is very expensive. You can use inverters to switch the direction of the current but you would probably be better off to replace your DC generator with an AC generator and if you need both AC and DC power then use a rectifier (inexpensive when compared to inverters) to convert the AC to a DC current.