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This study presents a wind conversion system with integrated energy storage and dispatchable output power. The energy storage acts as an auxiliary source to mitigate the wind power fluctuations and to follow the load demand changes. A control strategy is developed which manages the flow of power among the wind-turbine generator, the energy storage and the grid. A dynamic model for the overall wind conversion system is developed. A controller is designed systematically for the wind conversion system based on the developed dynamic model. Performance of the system in various modes of operation is evaluated based on digital time-domain simulations in the power simulink (PSIM) software environment.