Wind power generation is gaining popularity as the power industry in the world is moving toward more liberalized trade of energy along with public concerns of more environmentally friendly mode of electricity generation. The weakness of wind power generation is its dependence on nature-the power output varies in quite a wide range due to the change of wind speed, which is difficult to model and predict. The excess fluctuation of power output and voltages can influence negatively the quality of electricity in the distribution system connected to the wind power generation plant. In this paper, the authors propose an intelligent adaptive system to control the output of a wind power generation plant to maintain the quality of electricity in the distribution system. The target wind generator is a cost-effective induction generator, while the plant is equipped with a small capacity energy storage based on conventional batteries, heater load for co-generation and braking, and a voltage smoothing device such as a static Var compensator (SVC). Fuzzy logic controller provides a flexible controller covering a wide range of energy/voltage compensation. A neural network inverse model is designed to provide compensating control amount for a system. The system can be optimized to cope with the fluctuating market-based electricity price conditions to lower the cost of electricity consumption or to maximize the power sales opportunities from the wind generation plant.