AbstractIn this paper a systematic method of choosing the gain parameter of the wind turbine generator pitch control is presented using the Lyapunov technique that guarantees stability. A comprehensive digital computer model of a hybrid wind–diesel power generation system including the diesel and wind power dynamics with a superconducting magnetic energy storage (SMES) unit for stability evaluation is developed. The effect of introducing an SMES unit for improvement of stability and system dynamic response is studied. Analysis of stability has further been explored using an eigenvalue sensitivity technique. The eigenvalues of the system with and without an SMES unit are studied and the effect of variation of the SMES unit parameters on eigenvalue locations are plotted. The dynamic response of the power system to random load changes with optimal gain setting is also presente