When large wind farms are integrated to grid a complete power flow and dynamic study is necessary to identify the most probable problems and to develop methods to mitigate them. Wind farms are usually spread over a wide area and has many wind generators, which produce varying active power as they are exposed to different wind patterns. Most wind power systems are based in remote rural locations and are therefore prone to voltage sags, faults, and unbalances. One of the major issues concerning a wind farm interconnection to a power grid concerns its dynamic voltage stability on the power system. Voltage instability problems in a power system due to insufficient reactive power during faults and heavy loading conditions. The dynamic utilization of reactive power using additional control and compensating equipment in a huge wind-farm integrated grid would able to solve the problems arises due to major system disturbances. This is also eliminate the necessity of major redesign in the existing transmission system for efficient real power transmission. This work proposes the renewable energy control center (RECC) and Static Synchronous Compensator (STATCOM) that together would address the issues involved in dynamic and voltage stability and also improve the transmission network efficiency by dynamic utilization of reactive power.