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Due to large power demand and environmental issues, electrical power generation from renewable energy sources is receiving more attention. Wind energy generation systems are being integrated to power networks worldwide in increasing numbers. The power system is therefore facing new challenges due to intermittent nature of input source. One of these problems is voltage stability in wind farms equipped with squirrel cage based induction generators. Flexible AC Transmission System (FACTS) devices can be used for this problem. This paper, investigates the Static Synchronous Compensator (STATCOM) application to achieve continuous operation of wind turbine equipped with cage based induction generators during grid faults. The simulation has been done in MATLAB/Simulink framework. It is shown that a Static Synchronous Compensator (STATCOM) enhances voltage profile of power grid containing induction generator based wind farm.