been computed for energy balance in a system consisting of wind generation and load taking into consideration the uncertainties in forecasts of both load and the wind generation optimal storage size is given by the optimal energy capacity and the optimal power capacity the minimum initial stored energy is also computed the methodology presented can be easily modified to address a system with other renewable sources of generation such as solar power in addition since no specific storage technology had been considered the methodology can be modified to consider any specific type of storage and scaled to consider a renewable storage system at the large scale grid level or at a small scale system such as smart buildings the idea is also applicable in the microgrid framework with renewable generation and with minimum or no connection to the electric grid fig2 demonstrates the discretization process for the wind power forecasts the continuous probability distribution curve is discretized to quantize the forecasts into different levels the process of discretization is required for the stochastic linear program formulation in this work the discrete levels considered are u03bc u2212 3 u03c3 u03bc u2212 2 u03c3 u03bc u2212 u03c3 u03bc u03bc u03c3 u03bc 2 u03c3 u03bc 3 u03c3 with corresponding probabilities obtained from the given probability distribution function here u03bc is the sum of the forecast at an interval and.