With the advancement of technology non-conventional resources of energy are playing a major role in generating electricity. Non conventional sources of energy are used in various forms of energy such as solar energy, wind energy, hydro power, geothermal energy, bio energy and various energy storages. The wind energy generation is one of the efficient source of generating electricity. The wind generating system is facing problem when connected to the grid which creates serious power quality issues and need to be solved. This paper presents the power quality issues concerned in wind energy generation, utilization and its grid penetration in an electrical grid. The fluctuations in wind generated power causes stability problems. The power quality of the wind generating source in the electrical network is affected by the weak interconnection of the source. Nowadays, there are various power quality issues such as voltage variation, flicker, active power, reactive power, harmonics and electrical behavior of switching operation. These are measured according to national/international guidelines. This paper mainly explains the power quality problem faced during the setting of wind turbines with the grid. Nowadays there is a huge improvement in technologies, and thus using various new techniques, the wind turbine [1] has to control the reactive power over a wide range.