© 2015 IEEE. Personal use is permitted, but republication/redistribution requires IEEE permission. In this paper, an intelligent economic dispatch (ED) model integrating wind energy, carbon tax, and battery energy storage system (BESS) is developed. BESS is incorporated with wind generation to reduce fluctuation of wind energy output. To verify the suitable storage size for the Australian power grid, a sensitivity analysis is performed with different levels of BESS. Carbon tax is also considered to reduce carbon emissions in the proposed ED scheme. A hybrid computational framework based on quantum-inspired particle swarm optimization (QPSO) is proposed to achieve faster and better optimization performance, and its viability demonstrated on a simplified 14-generator model of the Australian power system using a set of case studies. The proposed dispatch model can minimize the generating cost and enhance renewable power consumption capacity.