Injection of the wind power into an electric grid affects the power quality. The performance of the wind turbine and thereby power quality are determined on the basis of measurements and the norms followed according to the guideline specified in International Electro-technical Commission standard, IEC-61400. The influence of the wind turbine in the grid system concerning the power quality measurements are-the active power, reactive power, variation of voltage, flicker, harmonics, and electrical behavior of switching operation and these are measured according to national/international guidelines. The paper study demonstrates the power quality problem due to installation of wind turbine with the grid. In this proposed scheme STATic COMpensator (STATCOM) is connected at a point of common coupling with a battery energy storage system (BESS) to mitigate the power quality issues. The battery energy storage is integrated to sustain the real power source under fluctuating wind power. The STATCOM control scheme for the grid connected wind energy generation system for power quality improvement is simulated using MATLAB/SIMULINK in power system block set. The effectiveness of the proposed scheme relives the main supply source from the reactive power demand of the load and the induction generator. The development of the grid co-ordination rule and the scheme for improvement in power quality norms as per IEC-standard on the grid has been presented.