Abstract: In the context of the gradual improvement of the electricity market, formulating pricing principle for reactive voltage regulating equipment can balance the profits of power generation enterprise and power supply companies and reduce the cost of reactive power. By considering the P-Q characteristics of DFIG and synchronous motor, a generator reactive power pricing model is established, and a DFIG reactive power segment pricing strategy in case of wind speed fluctuation is proposed. A dynamic reactive power optimization model for power system with wind farm is established, whose objective function are generator reactive power cost, discrete variable action depreciation price, active power network loss combined cost and total node voltage deviation. A new improved HPSO algorithm is proposed to solve the dynamic reactive power optimization model, which improves the global optimization ability and convergence speed. Finally, the IEEE30 node is taken as an example to analyze the effectiveness of the proposed model, strategy and algorithm is verified with simulation on MATLAB.