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High wind penetration Wind Diesel Hybrid Systems (WDHS) have three operation modes: Diesel Only (DO), Wind Diesel (WD) and Wind Only (WO). The WDHS presented in this article consists of a Diesel Engine (DE), a Synchronous Machine (SM), a Wind Turbine Generator, the consumer Load, a Ni-Cd Battery based Energy Storage System (BESS) and a Dump Load. The DE can be engaged (DO and WD modes) or disengaged (WO mode) from the SM by means of a clutch. All the models of the previously mentioned components are presented and the performance of the WDHS has been tested through simulation using the MATLAB-Simulink environment. Simulation results with graphs for the frequency, voltage and active powers for the elements of the Isolated Power System are presented for wind speed changes in WO mode and for the transition from WO to WD mode.