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The large-scale wind power may influence the stability of the power system when its penetration level exceeds some limit and some disturbance as the short circuit happen. To study and preview this phenomenon before connect the wind farm into the grid, the use of simulation method has been a good tool. This paper evaluated the stability analysis of the power system in Santiago Island, Cape Verde, considering a 9.25 MW wind farm installed and connected into the 40 MW grid. The simulation results by MATLAB/Simulink® show the stable performance of power system under short circuit fault. The effect of STATCOM is also evaluated.