Presently, renewable energies and especially wind energy are gaining a special relevance in the electrical market worldwide. This current rate of growth brings with it the need for the various wind farms to not limit themselves to producing energy but also provide stability to the network within its capabilities. So, the actual objective is to adapt the installations that produce wind energy in such a way that they give a maximum amount of support in any given moment to the electrical network. For this purpose, there are governing techno-economic parameters that influence the economic behavior of commercial wind farms. A complete cost-benefit analysis model is developed, focused on incorporating automatic capacitor banks into wind farms for the compensation of reactive power. This economic analysis is about doubly fed induction generator (DFIG) wind turbines. Although this kind of wind turbines have a certain capability in terms of modulating reactive power, this capacity is not enough to achieve the new requirements of reactive power regulation in Spain and it is necessary to invest in systems of external compensation. In this paper, we have studied the case of DFIG wind turbine and capacitor banks, although the used methodology can be applied to other technologies as well by simply amplifying the algorithms according to the specific characteristics of the option elected. Following this premise, a detailed analysis of the specific needs of a wind farm has been carried out, as well as a search for the optimum performance for the compensation of reactive power. (C) 2007 Elsevier Ltd. All rights reserved.