This chapter presents an overview of key issues and technical challenges in a regional electric network, following the integration of a considerable amount of wind power. A brief survey on wind power system, the present status of wind energy worldwide, common dynamic models, and control loops for wind turbines are given. In this chapter, the Kurdistan electric network in the Northwest part of Iran is introduced as a case study system, and an analytic approach is conducted to evaluate the potential of wind power installation, overall capacity estimation, and economic issues, based on the practical data. Then, the impact of high penetration wind power on the system dynamic and performance for various wind turbine technologies is presented. The stability of integrated system is analyzed, and the need for revising of conventional controls and performance standards is emphasized. Finally, a STATCOM-based control approach is addressed to improve the system stability.