The electricity sector is going through a rapid transition in the energy landscape. The global share of distributed renewable energy sources like solar panels and wind power for energy generation is on the rise. Even though this transition to renewable energy sources is beneficial for reducing global CO2 emissions, the intermittent nature of solar and wind power makes their integration into the electricity grid a highly challenging task.

In this thesis we formulate mathematical models and develop computational techniques which facilitate reliability analysis of power grids integrated with wind power and energy storage devices. This thesis focuses on the reliable operation of the power grid which can in general be disrupted by the intermittent nature of wind power . Adverse effects of wind power variability can be mitigated by incorporating energy storage devices into the grid . Hence we investigate how to operate and place energy storage devices into the power grid for reliable operation of the grid. We also develop simple stochastic models for wind power which can be used to study statistical properties of power grids and to estimate grid reliability indices.