Worldwide wind turbines have steadily increased. They are very different in nature from conventional generators. Induction generators in large scale are used in wind turbines for their simple construction and reliable operation. With the increase in penetration of wind turbines, the power system dominated by synchronous machines will experience a change in dynamics and operational parameters. This paper aims to analyze the impact of induction generators on transient and small signal stability of power systems by gradually increasing the rate of power generated by wind turbines and changing the location of these turbines in the power system.