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Innovations in electricity infrastructure of today's Smart Grid will allow distributed renewable resources to provide transmission level support when combined with new energy storage technology. The modernization of the existing grid requires the implementation of controls and communication architecture that are capable of coordinating as available resources such as wind generation, energy storage and loads in order to improve the efficient and economic operation of the electric power distribution system. Integration of energy storage systems into the Smart Grid can manage the real power variability of wind generation by providing ramp rate variation control and frequency regulation via droop control response. These control features drastically increase reliability of the Smart Grid, enables more effective grid management. Operational issues raised by the variability and high ramping characteristics of wind generation can be mitigated with the integration of battery energy storage systems. This paper presents several control methodologies for battery energy storage systems. Results are discussed particularly with respect to developing better insight into the dynamic performance of such resources and how to manage problems associated with the viability in real power output of wind generation.