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This paper presents the use of battery energy storage system for power smoothing in generation systems in which power flow variations can occur. These variations are the norm in wind energy generation. A simulation model for a battery energy storage system and a wind farm using squirrel cage induction generators magnetized with fixed capacitor banks are presented. And a decoupling and feed forward compensating control strategy is proposed. Simulations have been carried out and demonstrate that the BESS has the potential to significantly improve the wind farm's performance. Through control of the charging and discharging of the BESS using a power electronic interface, it is shown that the wind farm's output power can be controlled to a constant value. In addition, there is an overall improvement in the transient and dynamic response of the system.