In this paper, the effort is to study the impact of short-term storage technology in stabilizing the frequency response under increasing wind penetration. The frequency response is studied using Automatic Generation Control (AGC) module, and is quantified in terms of Control Performance Standards (CPS). The single area IEEE Reliability Test System (RTS) was chosen, and battery storage was integrated within the AGC. The battery proved to reduce the frequency deviations and provide good CPS scores with higher penetrations of wind. The results also discuss the ability of the short term storage to benefit the system by reducing the hourly regulation deployment and the cycling undergone by conventional units, by dint of their fast response; and sheds light on the economic implications of their benefits. (C) 2014 Elsevier B.V. All rights reserved.