This paper describes evaluation results of the wind power penetration limit (WPPL) and the wind energy penetration (WEP) in the Mongolian central power system (MCPS). A wind power plant (WPP) in a power system possesses an output power limit because the power system must maintain a balance between the generation and consumption of electricity at all times in order to achieve an adequate level of quality. The instantaneous penetration limit (IPL) of wind generation at a load is determined as the minimum of the three technical constraints: the minimum output, the ramp rate capability, and the spinning reserve of the conventional generating units. In this paper, a WPPL is defined as the maximum IPL divided by the peak load. A maximal variation rate (VR) of wind power is a major factor in determining the IPL, WPPL, and WEP. This paper analyzes the effects of the maximal VR of wind power on the WPPL, WEP, and capacity factor (CF) in the MCPS. The results indicate that a small VR can facilitate a large amount of wind energy while maintaining a high CF with increased wind power penetration.