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Wind energy conversion systems comprise mechanical and electrical equipment and their controls. Modeling these systems for power system load flow and stability simulation studies requires careful analysis of the equipment and controls to determine the characteristics that are important in the timeframe and bandwidth of such studies. The objective of this paper is to review and discuss the most significant characteristics and specifics of models of fixed and variable speed wind turbine units and wind farms, along with important issues to be considered for incorporating of large scale wind farms into grids. The growing size of wind farms require a full scale system planning in order to guaranty a safe and reliable operation of the wind power plant. Selected important planning issues are discussed in this paper.