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Although there is considerable progress in the wind energy conversion technology, most of the currently installed wind turbines are using induction generators to convert mechanical energy to electrical one. The induction generators which are utilized in wind turbines and wind farms consume high amount of reactive power. Beside, since there is no voltage regulation installed for induction machines and they draw reactive power from power system, these machines are source of voltage fluctuations. Therefore, reactive power compensation is needed to provide expected voltage support where the wind turbines are connected. Minimizing the cost of compensation is the next important step. In this paper a practical method is proposed to find the minimum cost of reactive power compensation for use in radial connection of wind power turbines to power systems.