CL65 CREW HAD AN ELECTRIC RELAY ASSOCIATED WITH #1 GENERATOR CATCH FIRE. THE APPROPRIATE BUSSES WERE NOT ABLE TO BE PWRED. THE CREW DECLARED AN EMER AND LANDED AT THE NEAREST SUITABLE ARPT.

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AT FL270; IN CRUISE; AUTOPLT ON; CAPT'S LEG; WE HEARD A LOUD THUMP WITH IMMEDIATE R YAW AND A VERY LOUD BUZZING AS THE AIR-DRIVEN GENERATOR DEPLOYED AND THE AUTOPLT KICKED OFF WITH ASSOCIATED WARNING SOUND. ALL EFIS SCREENS WENT BLANK; SO WE DIDN'T HAVE AN IMMEDIATE INDICATION OF WHY WE HAD LOST ELECTRICAL PWR. ALL EFIS SCREENS RECOVERED SHORTLY; AND THE EICAS CAUTION MESSAGES DISPLAYED #1 GENERATOR OFF; AC #1 AUTO-XFER; AND OTHER MESSAGES ASSOCIATED WITH ELECTRICAL PWR INTERRUPTION. AS CAPT HAND-FLEW ACFT AND FO GOT OUT QRH; BOTH PLTS SMELLED ACRID ODOR; LIKE BURNING WIRE INSULATION AND OBSERVED SMOKE COMING FROM GLARE SHIELD IN FRONT OF CAPT AND AROUND CAPT'S FEET. CAPT ORDERED OXYGEN MASKS ON AND TOLD FO TO TELL ATC WE NEEDED TO DIVERT TO CLOSEST AIRFIELD FOR EMER. FO DECLARED EMER FOR SMOKE IN COCKPIT AND ELECTRICAL PROBS AND CALLED FOR IMMEDIATE DSCNT WITH ZTL WHILE CHANGING SQUAWK TO 7700. CAPT DIRECTED FO TO RUN QRH CHKLISTS WHILE CAPT DSNDED ACFT AND PROCEEDED ON VECTORS TO RDU. FO COMMUNICATED TO FLT ATTENDANT THAT WE WERE DIVERTING AND ENSURED THAT THERE WERE NO PROBS OR SMOKE IN CABIN. COM WITH FLT ATTENDANT WAS DIFFICULT DUE TO NOISE LEVEL FROM ADG. SMOKE DISSIPATED QUICKLY; SO CAPT ELECTED NOT TO DEPRESSURIZE CABIN; ALTHOUGH CAPT AND FO KEPT MASKS ON IN CASE OF FURTHER SMOKE PROBS. #1 GENERATOR WOULD NOT RESET. ACFT SYNOPTIC PAGE SHOWED #1 GENERATOR OFFLINE; #1 AC BUS UNPOWERED; #1 UTILITY BUS SHED; #2 GENERATOR ONLINE AND PWRING #2 AC BUS AND ESSENTIAL BUS. DC ELECTRIC SYNOPTIC PAGE SHOWED TRU (TRANSFORMER RECTIFIER) #1 UNPOWERED. STARTED APU FOR GENERATOR REDUNDANCY. RAN DSCNT; APCH AND BEFORE LNDG CHKLISTS. FO INFORMED FLT ATTENDANT THAT WE WERE 5 MINS OUT AND LNDG WOULD BE NORMAL. UNEVENTFUL LNDG AND ROLLOUT; CLRED RWY AND ASKED CFR TO CHK ACFT BEFORE PROCEEDING TO GATE. COMMON TWR/CFR/GND FREQ HAD WORKED IN AIR; BUT COULD NOT COMMUNICATE WITH CFR ON GND; AND HAD TO RELAY THROUGH TWR. CONTACTED STATION PERSONNEL; WHO TOLD US THEY WERE EXPECTING US (OUR COMPANY HAD BEEN INFORMED BY ANOTHER COMPANY FLT WHO HAD HEARD US ON CTR FREQ) AND WERE ALREADY PLANNING PAX HANDLING. WHILE TAXIING TO GATE; FO INFORMED PAX THAT WE HAD DIVERTED TO RDU BECAUSE A BACKUP SYS HAD OPERATED WHEN IT WASN'T SUPPOSED TO. BURNT INSULATION SMELL WAS STILL VERY EVIDENT IN FLT DECK COMPARTMENT; APPEARED NOT TO HAVE PENETRATED TO CABIN. DEPLANED PAX AT GATE; MET WITH MAINT PERSONNEL ON GND; RELAYED TO COMPANY MAINT THAT WE HAD CALLED OPS CTR CHIEF PLT; SCHEDULING; AND CONFERRED WITH RAMP PERSONNEL ABOUT SECURING ACFT. POSTFLT INSPECTION WITH MAINT INDICATED AN ELECTRICAL COMPONENT; POSSIBLY A RELAY; IN THE AVIONICS BAY UNDER THE FLT DECK COMPARTMENT; HAD CAUGHT FIRE AND MELTED; AND SCORCHED WIRING BUNDLES AND THE IMMEDIATE SURROUNDING AREA.