Application of Distributed Generation (DG) to supply the demands of a diverse customer base plays a vital role in the renewable energy environment. Various DG technologies are being integrated into power systems to provide alternatives to energy sources and to improve reliability of the system. Power Evacuation from these remotely located DG's remains a major concern for the power utilities these days. The main cause of concern regarding evacuation is consumption of reactive power for excitation by Induction Generators (IG) used in wind power production which affects the power system in variety of ways. This paper deals with the issues related to reactive power consumption by Induction generators during power evacuation. A Wind farm is modeled and simulations are carried out for studying the various impacts it has on the grid & nearby Wind Turbines during system event especially on 3-Phase to ground Fault. © 2009 IEEE.