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The UK Government is working towards a target of providing 10 % of UK electricity from renewable sources by 2010 with the aspiration that this will rise to 20% by 2020. However, the connection of any wind farm to the grid must comply with the Grid Code connection requirements. One of the requirements is that the wind farm must have the capabilities to operate within certain reactive power and voltage operating control range. This paper discusses the issue of energy loss minimization of electricity networks with large renewable wind generation. The impact of the special operating arrangements of large wind generation on energy loss of electricity networks is investigated. An optimal power flow (OPF) approach is proposed to minimize the energy loss of electricity network with reactive power and FACTS control, while satisfying the network operating voltage and thermal limits.