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High wind power penetration can have significant impact on the reliability performance of a power system due to the random nature of wind speed. The impact of wind power penetration on system reliability is critical for system planning and operation. In this paper, the system reliability has been studied considering the impact of wind farms. The universal generating function technique has been used to model the performance of wind generating units and wind farm. An illustrative example has been analyzed to illustrate the applications of the proposed method.