This study deals with the operation of the wind power generation system (WPGS) having active filter capabilities using the grid‐interfacing converter (GIC) control approach. A novel current decomposition technique based on enhanced instantaneous power theory (EIPT) is suggested for controlling the GIC to realise an improved power quality (PQ) in WPGS and to provide the requisite reactive power support. To reduce the sluggish response of the numerical filters, a novel mathematical average algorithm is proposed. Furthermore, to reduce the non‐linear load effects at GIC, a 13‐level reduced switch multi‐level inverter (RSMLI) is integrated. Real‐time application point of view in the proposed approach, to improve the GIC performance, a novel indirect current control (ICC) technique‐based EIPT approach is proposed. ICC technique is used to decompose the power component into a much more detailed component by which it is easier to cancel out the non‐linear components and make the system more flexible and reliable for practical applications. The rotor interfacing converter control approach is used to attain the optimum power. Considering different test conditions, the performance of the proposed EIPT‐based 13‐level RSMLI approach is investigated through MATLAB/Simulink software.