To ensure the security and reliability of an isolated power system, and to maintain sufficient emergency reserves across several system units, a system with significant wind power generation, is much more capable of responding to frequency deviations and system load pick-up following a contingency. In this paper, several techniques are applied to determine the proportion of wind generator capacity that can be integrated into an isolated system. The direct search method is also extended to coordinate wind and thermal dispatch and to minimize total generation cost. Numerical experiments are included to demonstrate various constraints in production cost analysis and to provide valuable information for both operational and planning problems in the Taiwan power system.