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In this paper, the performance of variable speed wind turbine concept with cage rotor induction generator connected to the grid is investigated. Variable-speed wind turbine generator system has been modeled and simulated to study their steady state and dynamic behavior. A cage rotor induction machine of 11 kW rating with a vector controlled back-to-back PWM-VSI inverter on the stator side have been tested and the results compared with digital simulations. The cage rotor induction machine allows good speed range and it should be used in low-power variable-speed systems, replacing the classical direct grid connected fixed speed wind generator systems. Its capacity to deliver reactive power is remarkable.