A method and associated system for operating a power generation to supply real and reactive power to a grid includes determining a total reactive power demand made on the system during a first, stable grid state. A first reactive power portion of the reactive power demand is supplied by a generator, and a second reactive power portion is supplied by a reactive power compensation device, wherein the second reactive power portion may be greater than the first reactive power portion. Upon detection of a grid fault, the first reactive power portion is increased and the second reactive power portion is decreased.