Recent decades have witnessed a significant increment in power contribution from wind generators. This increment in penetration requires power engineers to tackle multi-fold challenges concerning operational and stability aspects. There exists a significant attention among the researchers in analyzing the impact of wind generation on various system aspects. This thesis focuses on steady state voltage stability aspects with penetration of Variable speed wind generators. Traditionally, ancillary services are supplied by large conventional generators. However, with the huge penetration of wind generators as a result of the growing interest in satisfying energy requirements, and considering the benefits that they can bring along to the electrical system and to the environment, it appears reasonable to assume that ancillary services could also be provided by wind generators in an economical and efficient way. Certain types of wind generators can support reactive power for the Power Market. Fixed and Semi-Variable speed wind turbine generators were predominantly employed during the early installations of wind generators. These units require reactive power support from the grid and are usually equipped with capacitor banks to provide the necessary reactive power. Further, STATic synchronous COMpensator (STATCOM) and Static Var Compensator (SVC) with various configurations were proposed to enhance the system operations under normal and disturbed conditions. On the other hand, Variable speed wind turbine generators provide flexibility in control and hence are becoming increasingly popular. Popular among this class of wind turbine generating units are Doubly Fed Induction Generator(DFIG) and induction/synchronous Generator with Front End Converter(GFEC). Contrary to Fixed and Semi-Variable speed wind machines, Variable speed wind turbine generators are capable of providing reactive power to the grid. The converter and control schemes associated with these machines permits controlling the active and reactive power output to desired level. It is possible to control the reactive power output of these machines independently of the active power. Researchers in the past have investigated the impact of reactive power output of variable speed wind machines on system stability. In literature, approaches are proposed to utilize the flexibility in reactive power generation of DFIG to reduce system losses, improve reliability in static and dynamic system operation. Approaches in literature investigate the impact on voltage stability of system by considering the flexibility of reactive power output of wind machine in isolation. However, significant improvement in static voltage stability, voltage profile, system power losses etc. can be attained if the Reactive Power output of Variable Speed wind machines can be properly coordinated with other reactive power controllers. The prime objective of the thesis is to propose algorithms to coordinate the reactive power output of Variable Speed Wind Generators with other reactive power controllers for Enhancement in voltage stability margin, system losses and voltage profiles.