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Wind turbine installation is increasing rapidly. In some networks, wind power penetration is significantly high and the performance of wind turbine plays an important role in power system operation and control. Especially, the behavior of wind turbines during a power system disturbance would affect power system stability and supply security. Some existing wind turbines are still based on fixed speed induction generators, the effects of capacitor bank on such generators are discussed in this paper. The simulation study shows the capacitor bank may cost-effectively improve the dynamic performance of the induction generators.