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This paper presents a novel power balance control method for wind energy systems feeding an isolated grid. The system is based on a variable-speed wind energy conversion system (WECS) connected to an AC load using a power converter. An energy storage system, connected to the AC load using an additional converter, is used to balance the power generated by the WECS with the load. In this paper the vector control systems for both interfacing power converters are discussed. The proposed control methods are implemented in a 2 kW experimental prototype and the experimental results are fully analysed and discussed in the paper.