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Wind turbine technology has significantly improved over the last 20 years, allowing for the rapid growth of the wind penetration that we are now witnessing. Large-scale wind power penetration impacts the electricity supply industry (ESI) in many aspects and leads to fundamental changes in electric power systems. Also, it raises a number of technical challenges for the transmission system operator, distribution system operator, and wind turbine generator manufacturers. This paper aims to present in a thorough and coherent way the picture redrawn for electric power systems under large wind power penetration. Topics related to technical challenges emerged and relevant technical solutions required are analyzed. Finally, general conclusions are extracted about the current and future ESI status and general directions are recommended.