Standalone operation of a wind turbine generating system under fluctuating wind and variable load conditions is a difficult task. Moreover, high reactive power demand makes it more challenging due to the limitation of reactive capability of the wind generating system. A Remote Area Power Supply (RAPS) system consisting of a Permanent Magnet Synchronous Generator (PMSG), a hybrid energy storage, a dump load and a mains load is considered in this paper. The hybrid energy storage consists of a battery storage and a supercapacitor where both are connected to the DC bus of the RAPS system. An energy management algorithm (EMA) is proposed for the hybrid energy storage with a view to improve the performance of the battery storage. A synchronous condenser is employed to provide reactive power and inertial support to the RAPS system. A coordinated control approach is developed to manage the active and reactive power flows among the RAPS components. In this regard, individual controllers for each RAPS component have been developed for effective management of the RAPS components. Through simulation studies carried out using detailed model in MATLAB Simulink, it has been demonstrated that the proposed method is capable of achieving: a) robust voltage and frequency regulation (in terms of their acceptable bandwidths), b) effective management of the hybrid storage system, c) reactive power capability and inertial support by the synchronous condenser, and d) maximum power extraction from wind. © 2014 IEEE.