This paper gives a novel idea of application of ANN based UPFC controller for Reactive Power compensation in a standalone hybrid power system and thereby enhances the stability of the system .For the Isolated WECS a linear small signal transfer function model of the hybrid wind Diesel model is considered with different loading conditions. The reactive power compensation and stability analysis have been carried out with UPFC Controller with an IEEE exciter I. A feed forward neural network with back propagation technique is designed to tune the parameters of UPFC controller. From the matlab Simulation it is clear that the system parameters attend steady state value with lesser time and complexities.
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