Now a days the requirement for renewable energy power production is increasing due to scarcity of conventional energy resource. So, one of the best renewable energy resource for production of electrical energy is wind. As most of the loads are lagging loads, losses will be more due to low power factor. In this Study, the authors suggest that even though capacitor bank is connected to compensate reactive power, and maintain voltage stability, there is no constant required power factor at all loads. Due to connection of capacitor in steps using capacitor bank, there is over compensation. So, power factor is low. So, in this paper they propose “Thy ristor Controlled Capacitor” to improve power factor in windmill power plant. The Expected results were obtained by using MATLAB soft ware tool. The data is collected from Wind mill power plant maintained by DECCAN CEMENTS LTD. located at RAMAGIRI, Anantapur (Dist), Andhra Pradesh, India.