The volatility and intermittency of wind energy result in highly unpredictable wind power output, which poses challenges to the stability of the intact power system when integrating large-scale wind power. The accuracy of wind power prediction is critical for maximizing the utilization of wind energy, improving the quality of power supply, and maintaining the stable operation of the power grid. To address this challenge, this paper proposes a novel hybrid forecasting model, referred to as Hybrid WT–PSO–NARMAX, which combines wavelet transform, randomness operator-based particle swarm optimization (ROPSO), and non-linear autoregressive moving average with external inputs (NARMAX). The model is specifically designed for power generation forecasting in wind energy systems, and it incorporates the interactions between the wind system’s supervisory control and data acquisition’s (SCADA) actual power record and numerical weather prediction (NWP) meteorological data for one year. In the proposed model, wavelet transform is utilized to significantly improve the quality of the chaotic meteorological and SCADA data. The NARMAX techniques are used to map the non-linear relationship between the NWP meteorological variables and SCADA wind power. ROPSO is then employed to optimize the parameters of NARMAX to achieve higher forecasting accuracy. The performance of the proposed model is compared with other forecasting strategies, and it outperforms in terms of forecasting accuracy improvement. Additionally, the proposed Prediction Error-Based Power Forecasting (PEBF) approach is introduced, which retrains the model to update the results whenever the difference between forecasted and actual wind powers exceeds a certain limit. The efficiency of the developed scheme is evaluated through a real case study involving a 180 MW grid-connected wind energy system located in Shenyang, China. The proposed model’s forecasting accuracy is evaluated using various assessment metrics, including mean absolute error (MAE) and root mean square error (RMSE), with the average values of MAE and RMSE being 0.27% and 0.30%, respectively. The simulation and numerical results demonstrated that the proposed model accurately predicts wind output power.