This paper proposes a data driven model-based condition monitoring scheme that is applied to wind turbines. The scheme is based upon a non-linear data-based modelling approach in which the model parameters vary as functions of the system variables. The model structure and parameters are identified directly from the input and output data of the process. The proposed method is demonstrated with data obtained from a simulation of a grid-connected wind turbine where it is used to detect grid and power electronic faults. The method is evaluated further with SCADA data obtained from an operational wind farm where it is employed to identify gearbox and generator faults. In contrast to artificial intelligence methods, such as artificial neural network-based models, the method employed in this paper provides a parametrically efficient representation of non-linear processes. Consequently, it is relatively straightforward to implement the proposed model-based method on-line using a field-programmable gate array. (C) 2014 Published by Elsevier Ltd.