For grids of low X/R ratios voltage control through active power is effective in reducing the voltage at the point of interconnection of wind farms to grid. Active power voltage control can be achieved using energy storage schemes or inter connectors. In this paper we propose variable frequency transformers (VFT) as an effective means of interconnecting synchronous or asynchronous regions to enhance wind penetration. It is shown that the steady state stability limits of the system are improved with VFT as inter connectors. Also the performance of the VFT under open circuit and short circuit conditions are evaluated. © 2008 IEEE.