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This paper presents the voltage build up process and terminal voltage control in an isolated wind powered induction generator driven by a variable speed wind turbine using stator flux oriented vector control. Here three-phase induction generator is excited using a PWM inverter/rectifier connected to a single capacitor on the DC side. Wind powered isolated induction generators have an input, wind, which is not controllable, but they can be set to operate within a given variation of speed. Unlike a grid connected induction generator, in an isolated induction generator there should be a control system that keeps the DC bus voltage at a constant value when the speed of the rotor is varied. This paper present the control system to maintain the DC bus voltage at a constant value by varying the flux in the induction generator when the rotor speed is varied. During voltage build up the variation of magnetizing inductance is taken into consideration.