Reactive power support is considered to be necessary for dealing with a voltage stability issue with wind turbine system employing squirrel-cage induction generator(SCIG). This paper analyses steady-state characteristics of the SCIG wind turbine system by simulating torque-slip characteristics of SCIG with respect to variations of interconnecting network strength and generator terminal voltage. It also presents dynamics analysis of SCIG wind turbine system on Simulink to investigate the impact of static var compensator(SVC) and static synchronous compensator(STATCOM) on transient stability enhancement. It analysed transient stability with varying fault duration times and compared the transient stability characteristics with varying rated capacities of SVC and STATCOM. It is shown that the STATCOM has a better performance and reactive power support compared to SVC.