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Fast reactive power variation in wind farms creates flicker. Static VAR compensators (SVCs) are the most commonly used devices for flicker mitigation. The reactive power calculation unit is the main component in the control system of SVCs. This article deals with two new approaches for reactive power calculation. In both methods, the main parameters of a filter-based technique are optimized using a novel optimization approach. The first method has a non monotonic step response which is converted to a desirable monotonic response by the second method. This results in a better response to a time-varying reactive power. The problem formulation and definition of a new objective function are presented. A data pool is gathered from Manjil wind farm, Iran, for different conditions. This data pool is used in the objective function to derive the optimal setting. The performance of the proposed methods is assessed using this dataset and is compared with other techniques. Also, real-time implementation of the algorithm is evaluated using TMDSCNCD28335 as the processor. To do so, the reactive power variation in a wind generation unit is emulated in a prototype test bench and the algorithm is run in real-time by the processor during the system operation. [ABSTRACT FROM AUTHOR]