This paper describes the modelling and control system of a direct-drive PMSG wind turbine for effective active and reactive power generation control and voltage control at the grid connection point. This study focuses on the maximum power capability of the wind turbine, which is limited by its generator and power converter. The ability of this model and control strategy are assessed by means of simulations and discussed at length. The results of our study show that a PMSG wind turbine is able to actively participate in grid operation because it can independently control active and reactive power production (operating as a PQ node) or the active power and voltage at the connection node (operating as a PV node). (C) 2009 Elsevier Ltd. All rights reserved.