Abstract The paper presents the social welfare calculation and comparison of two different operating strategies for the operation of Pumped Storage Hydro (PSH) plant. Both operating strategies are developed with the main aim of maximising the profit of the Wind-PSH hybrid plant. For this work we are predicting the wind speed and then with the predicted values of wind speed, wind power is calculated and then committed to a day ahead market system. PSH is used as a hedging tool and it operates to reduce the difference between the predicted and actual wind power output. Thus the combined operation of wind and PSH helps to reduce the effect of uncertainties of wind power. In this paper we are calculating and comparing the social welfare of two different operating strategies of wind-PSH hybrid plants. First operating strategy is a new one developed for this work and the second operating strategy is presented in ref [4] . Social welfare calculation is done using 2 different Optimal Power Flow (OPF) algorithms i.e. MATLAB Interior Point Solver (MIPS) and Particle Swan Optimization (PSO). The social welfare of the proposed strategy is compared with the strategy proposed in ref [4] for the 2 OPF techniques. The implementation and social welfare calculation is done on modified IEEE 30 bus system with a modified objective function so as to include the demand side bidding.