This study presents a small scale energy system modelling tool which can be used to plan a secure and economical hourly generation schedule, for a day ahead commitment process in a power system with conventional and wind generation units. The problem solves a unit commitment problem (UC) with operational and transmission system constraints. Simple energy balances or UC solutions obtained without considering power flow constraints are not practical due to secure operation of the power network. With the increasing inclusion of wind generators and other renewable generation, line flows can be altered that may lead to expensive schedules and may not be even feasible at worst. Thus the need for a modelling tool in this context is apparent. The unit commitment problem is formulated to run the optimal power flow dispatch as an integral part of the solution. A forward dynamic programming approach is used to solve for the unit commitment optimization. The unit commitment model is validated using a standard text book case study and the optimal power flow solution using „MatPOWER‟, a tool for power flow analysis. A case study is carried out on the island of Corvo in Azores-Portugal to analyse an existing power network operation along with its future expansion plans in wind power integration. The results are compared with the actual data from Corvo and a HOMER simulation of the same. The algorithms are implemented through a Matlab simulation environment, and the results obtained are quite encouraging. The unit commitment solution was developed in collaboration with a colleague, Abhishek Shivakumar who is working on developing a demand response algorithm in alignment with the larger scope of the same project.