This paper presents an active and reactive power compensator for the wind power system with squirrel-cage induction generator. The output power of a wind power system changes irregularly according to the variation of wind speed. The developed system is able to continuously compensate the active and reactive power. The 3-phase inverter operates for the compensation of reactive power, while the DC/DC converter with super-capacitors operates for the compensation of active power. The operational feasibility of the proposed model was verified by simulations with PSCAD/EMTDC and the feasibility of hardware implementation was confirmed by experimental works with a scaled hardware model. The proposed compensator can be expected that developed system may be used to compensated the abrupt power variation due to sudden change of wind speed or sudden power-drop by tower effect. It can be also applied for the distributed generation and the Micro-Grid.