This paper presents the design of an online training fuzzy neural network (FNN) controller with a high-performance speed observer for the induction generator (IG). The proposed output maximization control is achieved without mechanical sensors such as the wind speed or position sensor, and the new control system will deliver maximum electric power with light weight, high efficiency, and high reliability. The estimation of the rotor speed is designed on the basis of the sliding mode control theory. (C) 2009 Elsevier Ltd. All rights reserved.