This paper represents a novel FACTS based on modulated power filter compensator (MPFC) for voltage stabilization in renewable wind energy with AC grid connected. Self-excited squirrel-cage induction generator (SEIG) is driven by a wind turbine for renewable a wind energy system. In order to improve voltage stabilization and energy utilization, the proposed FACTS technique is driven by a tri-loop dynamic error driven proportional-integral-derivate (PID) controller. To demonstrate the effectiveness of the proposed FACTS technique, a simulation model is developed for different operation conditions in MATLAB/SIMULINK software environment. Simulation results demonstrate that designed FACTS power filter compensator can be used to provide voltage regulation and efficient energy utilization.