In recent years, the matter of using renewable energy sources like solar or wind energy has become a major concern due to the limited amount of fossil fuel. The wind energy is one of the renewable energy sources which have attracted many researchers in recent years. Converting the wind kinetic energy to electrical energy is done by the use of a wind turbine connected to an electrical generator. One of the generators used for this purpose is the doubly fed induction machine. In this machine, the torque or electrical power of the machine’s stator can be controlled by feeding the rotor windings correctly. Using the equivalent circuit of the DFIM, we can express the stator active and reactive power in terms of stator and rotor flux vectors. The power equations show that the stator active and reactive power is in direct relation to both magnitudes of the flux vectors and the angle between them. With the stator being directly connected to the grid, the rotor flux can only be controlled by applying correct rotor voltages. To achieve a good performance, the power components control should be decoupled. To achieve this; the two axis model of the DFIM is used with the direct axis being placed on the stator flux vector. Now the active and reactive power of the stator can be controlled by controlling the quadrature and direct components of the rotor flux respectively. By neglecting the stator resistance, it can be assumed that the stator flux remains constant during the operation. With more precise analysis, it can be seen that the existence of the stator resistance can change both the magnitude and angle of the stator flux vector making the power control strategy coupled. To overcome this problem in this thesis; first the coupling between active and reactive power is analized and the the reasons behind it are introduced. Then the grid flux reference frame is used to make the power equations unaffected by the changes in the reference frame angle, afterwards a new method to calculate the correct reference rotor flux vectors is introduced by predicting the stator flux from the power commands with regards to the stator resistance. Knowing the fact that the rotor current can be directly measured in a DFIM, it can be used to estimate the rotor position by matching the measured and estimated rotor current vectors; therefor, eliminating the need for a position sensor to be used in the method. To ensure the correct estimation procedure for the rotor current, comparison of the magnitudes of the measured and estimated rotor current vectors is used to correct the magnetizing inductance value. Simulation results show the effectiveness of the proposed method in decoupled controlling of the Keywords: Wind Energy, Doubly Fed Induction Machine (DFIM), Direct Power Control (DPC), Direct Decoupled Power Control, Sensorless control, MRAS,