This article gives an overview of grid integration of wind farms with respect to impact on voltage quality and power system stability. The recommended procedure for assessing the impact of wind turbines on voltage quality in distribution grids is presented. The procedure uses the power quality characteristic data of wind turbines to determine the impact on slow voltage variations, flicker, voltage dips and harmonics. The detailed assessment allows for substantially more wind power in distribution grids compared with previously used rule-of-thumb guidelines. Power system stability is a concern in conjunction with large wind farms or very weak grids. Assessment requires the use of power system simulation tools, and wind farm models for inclusion in such tools are presently being developed. A fixed-speed wind turbine model is described. The model may be considered a good starting point for development of more advanced models, hereunder the concept of variable-speed wind turbines with a doubly fed induction generator is briefly explained. The use of dynamic wind farm models as part of power system simulation tools allows for detailed studies and development of innovative grid integration techniques. It is demonstrated that the use of reactive compensation may relax the short-term voltage stability limit and allow integration of significantly more wind power, and that application of automatic generation control technology may be an efficient means to circumvent thermal transmission capacity constraints. The continuous development of analysis tools and technology for cost-effective and secure grid integration is an important aid to ensure the increasing use of wind energy. A key factor for success, however, is the communication of results and gained experience, and in this regard it is hoped that this article may contribute. Copyright © 2003 John Wiley & Sons, Ltd.