A method for controlling dynamic power factor or the reactive power of a wind farm is provided. The wind farm comprises a number of wind turbines connected to a utility grid driven with a requested power factor or a requested reactive power. The wind turbine output voltage is controlled to a specific voltage set point. In the method, the wind farm power factor is measured and compared with the power factor requested for the utility grid, or the wind farm reactive power is measured and compared with the reactive power requested for the utility grid, respectively; the ratio of the wind farm voltage to the utility grid voltage is adjusted, and the output voltage of the individual wind turbines is regulated to correspond to the specific voltage set point; the steps are repeated until the power factor of the wind farm electricity corresponds to the requested reactive power.