Improvement of the operating efficiency of generators used in large wind power generation systems becomes important since such a large machine's power loss is not negligible. In the conventional method integral controller is used to reduce the power loss by up to 25 % at low wind speeds. The proposed PID controller method is based on flux level reduction, where the flux level is computed from the machine model for the optimum d-axis current of the generator. For the vector-controlled induction generator, the d-axis current controls the excitation level to minimize generator loss. In contrast, the q-axis current controls the generator torque, by which the speed of the induction generator is controlled according to the variation of the wind speed in order to produce the maximum output power, thereby improve the efficiency of the induction generator.