Wind power is ideally a renewable energy with no fuel cost, but has a risk to reduce reliability of the whole system because of uncertainty of the output. If the reserve of the system is increased, the reliability of the system may be improved. However, the cost would be increased. Therefore the reserve needs to be
estimated considering the trade-off between reliability and economic aspects. This paper suggests a methodology to estimate the appropriate reserve, when wind power is connected to the power system. As a case study, when wind power is connected to power system of Korea, the effects on reliability and economic aspects according to various reserve capacity is evaluated at HLII level and the appropriate reserve is determined.