This is an issue blown out of proportion, mainly by generator suppliers who do not see the complete picture of a project.
Consider the following:
The basic (misplaced) reason given is UPS loads produce harmonics on the line side and therefore the generator has to be oversized to mitigate potential excessive heat generated by the harmonics. While this sounds OK at first glance the practical reality is nowhere near it.
1. Almost all good UPS systems will have harmonic filters built-in and the input harmonics are normally limited to 7%, and definitely not more than 10%.
2. When a sizeable UPS is to be supported, it is not the 100% load on the generator. Because almost all critical loads (assuming computer type loads) requiring UPS needs cooling. The supporting loads including the cooling load is normally equal in kW to that of the UPS loads. This fact alone makes the 10% THD on line side a non-issue as the UPS load is now less than 50% of the generator capacity. Any motor loads also dampen the effect of harmonics at the generator terminals.
3. Battery charging is usually 10% of the UPS’s rated current, losses may be 10% so allowing for about 25% capacity for such items is more than adequate.
4. Now you factor in the normal cushion or margin thrown in for sizing the generator, say another 25%, the significance of the UPS harmonic diminishes even further.
5. Also if you are too technical, you can look into the probability of mitigating effect of harmonics, by using a proper pitch of the generator windings. For example 2/3-pitch winding is not affected by triple harmonics and so on. This is a slipper route as the winding pitch has other ramifications if you are paralleling the generators or paralleling with the utility company supply.
6. A fact of real life, I have yet to see a UPS system loaded more than 50% of its rated capacity. The harmonics, if any, are function of the actual load.
Considering all the above, you will have a generator sized more than twice the rating of an UPS system at any rate and if that is the case, I would not worry too much.