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The development of renewable energy based generation technologies attracts more and more attention. In particularly large number of wind turbines are being installed and connected to power system. In some countries or networks, the penetration level of wind power is significant high so as to affect the power system operation and control. Consequently, the stable operation of wind turbine systems is very important for power system stability. This paper studies the behaviours of a wind turbine system and the effect of STATCOM on stability improvement. The function of the STATCOM in improving the system stability has been demonstrated.