Please let us know the Make & Rating of the Alternator..
In the case of Big MW HV Generators the Responce of the AVR to the Low Load Conditions is Poor.
e.g Assume that the Generator requires the Excitation Current of @ 15 Amp at Full Load, It will Require less than 1/4th of the Full Load Excitation Current at 25 % Load, If the AVR is Designed to Deliver the Excitation Current of 1.4 Times the Full Load Excitation Current @ 21 Amps DC, then the Excitation current Required at 25 % Load will be Less than 3 Amps, For AVR it is difficult to manage this Low Excitation Current, Hence Manual Mode of Operations.
I have seen similar kind of AVRs for LT Alternators as well.