With continuous depletion of conventional sources of energy, Wind Energy Conversion Systems (WECSs) are turning out to be one of the major players with immense potential to meet the future energy demands. These WECSs are quickly becoming primary source of energy in coastal regions, islands, where they operate in autonomous mode. In this paper, a control strategy for controlled power extraction from a WECS, operating in islanded mode is presented. The proposed control strategy enables limited as well as maximum power extraction from WECSs with desired load voltage profile while minimizing the installation as well as the operating costs associated with the use of expensive batteries in the system. The motive behind using batteries in the system is to facilitate transient stability and enhance reliability. As opposed to pitch angle control, in the present work, real power control is attained by field-oriented control (FOC) of permanent magnet synchronous generator (PMSG). The operating point of the WECS is decided based on the wind turbine characteristics and the demanded power. Proper decoupling and feed-forward techniques have been deployed to eliminate cross-coupling and mitigate the effect of load side disturbances. Simulations are carried out under varying load demand as well as changing weather conditions to demonstrate the applicability and effectiveness of the proposed control strategy. © 2017 IEEE.