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Wind generation rapid development has brought challenge to the grid. Reactive voltage is the most outstanding and one of the most concerned problems. This paper introduces the concept of wind farms reactive power compensation and wind power grid code with respect to reactive power regulation all over the world, gives the simplified approach to estimate reactive power compensation capacity, and validates its efficiency with the case study. From grid reactive voltage control target and practical operation routine, the paper analyses and compares the impacts of two reactive power control targets, that is, constant voltage and constant power factor, on the grid steady-state operation. The conclusion shows that the reactive power compensation control target of wind farms should be determined by the robustness of the grid integrated, hierarchical reactive power balance, wind turbines reactive voltage control characteristic, and the reactive compensation device applied in wind farms.