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Effective reactive power control in distribution networks can have an important influence on the level of embedded generation that is acceptable and on the costs of its connection. A comprehensive study was undertaken to investigate how STATCOMs could be used with fixed-speed wind turbines, which use induction generators, to improve both the steady-state and dynamic impact of a wind farm on the network. An optimal power flow model based on loss minimisation was developed and used to show that operation of a wind farm at unity power factor is unlikely to allow maximum penetration of wind energy into a weak distribution circuit. The results of the electromagnetic simulations showed that the use of a STATCOM improves the steady-state stability limits of the network. They also showed that the use of a STATCOM with an appropriately designed control strategy can prevent damaging overvoltages that may …