A power generation system having a wind turbine blade assembly, a generator mechanically coupled to the blade assembly, and a power converter coupled to the generator is provided. An energy storage device and a bidirectional converter coupling the energy storage device to the power converter are also provided in the system. An inertia controller is provided for generating a first transient signal to regulate active power from the wind turbine system when a power grid signal is outside of a respective signal range. The system further includes an energy storage controller for providing a second transient signal to the bidirectional converter to regulate a power to or from the energy storage device based upon the first transient signal, power generating system conditions or combinations thereof.