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This paper presents theoretical, simulation, and experimental study of the brushless doubly fed twin stator induction generator (BDFTSIG) dynamics under vector control based on the orientation on the power machine stator flux. A complex transfer function is derived which links the control current and power winding current space vectors in the field coordinates. Based on this result, the transient response of the BDFTSIG to step changes in the control current is examined theoretically. The oscillatory transients are explained in detail and linked to control flux transients triggered whenever operation point of the generator is changed. Furthermore, BDFTSIG operation with closed loop control of the power machine active and reactive powers is examined theoretically and experimentally. It is shown that in the closed loop operation, the system damping may be reduced so that the PI controller gains must be properly selected to achieve a good transient response.