AbstractThis paper presents a novel approach for reactive power compensation and active filtering capability of a variable speed wind energy conversion system (WECS) with doubly fed induction generator (DFIG), without any over‐rating. First, the WECS is capable of capturing maximum wind power under fluctuating wind speed. Second, depending on the available wind power value versus nominal WECS power, power quality can be improved by compensating the reactive power and the grid harmonic currents, without any system over‐rating. The proposed rotor side converter (RSC) control manages the WECS function's priorities, between main active power generation and power quality management. To ensure high filtering performances, we used an improved harmonic isolator in the time domain, based on a selective pass band filter (SPBF) developed in our laboratory. Moreover, we took advantage of the high amplification effect of the rotor side‐controlled DFIG to compensate harmonic currents. Consequently, no over‐rating is necessary for the proposed additional active filtering capability. Simulation results for a 2 MW WECS with DFIG confirm the effectiveness and the performances of the proposed approach. Copyright © 2009 John Wiley & Sons, Ltd.