This paper shows an induction generator based wind power generation. This system has the voltage source converter excited induction generator for wind power generation. This is one of the investigations of possible combination of the induction generator for wind power and the power electronics equipments. Induction generator is popularly used for the wind power generation. The disadvantages of it are impossible to generate power at the lower rotor speed than the synchronous speed. To compensate this disadvantage, expensive synchronous generator with the permanent magnets sometimes used. In proposed system, the VSC is used to convert the real power from the induction generator to the intermediate dc power, while the reactive power necessary to excite the induction generator is supplied from grid side through VSC only. For the proposed system the future work may be extended by using the diode rectifier in parallel with low rated VSC. The diode rectifier converts real power from the induction generator, the reactive power is supplied from grid through the lower rated VSC. Thus the rating of the expensive VSC is minimized and total cost of the wind power generation system is decreased compared to the existing system with induction generator and synchronous generator.