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Wind energy is considered to be the most technically and economically viable among all renewable energy sources. Recent technologies related to wind energy are mostly equipped with doubly fed induction generator (DFIG) because of its several advantages. In this paper a study on the impacts of DFIGs on large multi-machine system on aspects of small signal stability is presented. It is shown that improvement in small signal stability of a large multi machine system is location dependent. Also the optimum loading of DFIG is determined in terms of some sensitivity analysis.