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The capacity of wind power generation in Jeju-island reaches more than 200 MW in the near future, which corresponds to more than 13% of power consumption of the island. This paper investigates performances of a battery energy storage system (BESS) to smooth power outputs of the wind farms for power quality enhancement of Jeju power system. Jeju power system including generation, transmission lines, substations, wind farms, high voltage direct current transmission system, and BESSs are modeled and analyzed by a real time digital simulator. The simulation results show the effectiveness of the BESS to Jeju power system for improving power quality. The proposed simulation scheme will be effectively employed to evaluate the proper capacity of the BESS for the grid-connected dispersed power utility like Jeju power system.