This paper shows new induction generation system for wind power generation. This system has the voltage source converter (VSC) exciting induction generator and the PFC converter to absorb the real power in parallel. Rating of the VSC is minimized since it supplies reactive power only. And the PFC converter absorbs all the reactive power. However, the loop current flows since the DC side of VSC and PFC converter are connected commonly. The cause and mode of the loop current are investigated by analysis and simulation. Simulation results and the experimental results show that suppression of loop current is possible by installing diodes at both the positive and the negative terminals of dc side of the PFC converter.