1 Abstract—In the remote district without power supply from bulk electrical grid, the wind energy can be utilized to generate a large quantities of power when power plants are installed in the islanded micro grid. Due to fluctuations in wind speed and resulting variable wind power, a small-scale diesel generator assists the wind power generator in providing a stable, sustained and efficient power generation. In addition, a Battery Energy Storage System (BESS) is capable of regulating its active power output in coordination with other generators to balance dynamic power demand and supply. Since the cost efficient is always the first issue for the control and operation of micro gird in remote areas, energy management becomes the primary criterion in central control unit of micro grids. The energy management of the wind power generator in micro grid aim to optimize the system in terms of generation, cost and load. Due to high uncertainty and volatility of wind speed, the Dynamic Programming Method (DPM) is employed in order to reduce the impact of wind speed uncertainty and fluctuation. As the wind generation imbedded in the micro grid can be managed by the proposed optimization control method, it ought to sustain as long as the lifetime of wind turbine or the micro grid. For this purpose, a combined short term and long term optimization is studied in this paper. Meanwhile, a micro-grid system is modeled and simulated using MATLAB software. Keyword- Wind power system, Optimization method, Dynamic programing, Battery energy storage system, micro grid, energy management. Nomenclature:  - air density [kg/m3],  - area swept by the rotor blades [m2],   - power coefficient,   - wind speed [m/s],  - tip speed ratio,  - blade pitch angle [degree], - battery package capacity [Ah], ሺሻ- Instantaneous current,   - charge power,   -discharge power, This work was supported in part by NSF Grant 0844707. H. Babazadeh, W. Gao and Zipping Wu are with Department of Electrical and Computer Engineering, University of Denver, Denver, CO, 80210 USA (hamed.babazadehrokni@du.edu, Wenzhong.Gao@du.edu, and wzpbsb@gmail.com) ሺሻ-state of system, ሺሻ-noise of the system, ሺሻ-measurement in the system,   ሺሻ- energy flowing from the battery to the load,   ሺሻ- energy flowing from the wind farm to the battery,   ሺሻ- energy flowing from the wind farm to the load,   ሺሻ -energy flowing from the diesel generator to the battery   ሺሻ-energy flowing from the diesel generator to the load,   ሺሻ- instantaneous load,   ሺሻ- instantaneous wind power generation,  ሺሻ- real-time pricing. I. INTRODUCTION Due to the expensive investment in transmission line construction, it is a rather costly project of delivering electricity to remote areas over a long distance. The low- voltage electricity system incorporating small scale distributed energy resources and energy storage facility are called micro grids. Therefore, small-scale power plants are employed to generate enough power for power demand of the micro grids. With an access to rich wind resources in most areas, wind turbine is an appropriate power generation system in many regions. In addition, wind energy lies in the category of favorite renewable energy which possesses many advantages such as pollution-free, less space for the generation base, free and enriched wind resources and low maintenance cost [1]. The power generation output should follow the variation in load, otherwise a frequency event will happen in the power grid [1]. In order to avoid the frequency event, all the power plants can be managed in coordinated manner to achieve a dynamic balance between load demand and power supply which is the fundamental principle of system operational stability. In many remote areas, it is difficult to build large- scale conventional power plants due to the restrictions of geographical location or other conditions. And also it is unlikely to construct a transmission line due to its low cost effectiveness. For these areas, renewable energy sources provide a chance to provide a large portion of flexible, green and high efficient power to track the load change. Optimal Energy Management of Wind Power Generator System in the islanded Micro-grid System Hamed Babazadeh, Wenzhong Gao, Ziping Wu Department of Electrical and Computer Engineering, University of Denver, Denver, CO, 80210 USA (E-mail: hamed.babazadehrokni@du.edu, Wenzhong.Gao@du.edu, and wzpbsb@gmail.com)