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In this paper, a real time wind turbine simulator (WTS) is proposed to simulate the dynamic behavior of wind turbine and generator. A novel torque sensorless inertia compensation algorithm is developed to simulate in real-time the dynamic mechanical performance of actual wind turbine with either larger or smaller inertia than the testing system. And the torque transducers are eliminated by using estimated generator electromagnetic torque. In addition, the proposed configuration of WTS is capable of fast response, rejecting grid voltage disturbance and grid-friendly connection. The experimental results verify the performance of proposed WTS.