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This paper proposes a framework for reliability and dynamic performance assessment of wind energy conversion systems (WECS) in the face of internal component faults and external grid disturbances. The proposed framework facilitates a quantitative analysis of different WECS designs, control strategies, and fault ride-through mechanisms. The framework can also be used to identify key design parameters that influence overall WECS reliability and to compute WECS reliability for different grid codes and performance requirements. To illustrate the framework, a case study for a doubly-fed induction generator is presented.