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This paper deals with a new control algorithm for a voltage and frequency controller (VFC) of an isolated wind energy conversion system (IWECS) using an isolated asynchronous generator to feed three-phase four-wire consumer loads. The reference source currents are estimated for the indirect current control of a voltage source converter (VSC) using the single-phase PQ theory to control the voltage and frequency of IWECS. A three-leg VSC with a battery energy storage system is used as a VFC for an IWECS. A nonisolated star-polygon transformer is used to provide a neutral terminal for four-wire loads and to compensate the neutral current resulting in reduction in rating of VSC. The proposed VFC is implemented using a DSP. Experimental results are presented to demonstrate the additional capabilities of VFC as a load leveler, a load balancer, a harmonic eliminator, and a neutral current compensator.