The integration of continuously varying and not easily predictable wind power generation is affecting the stability of the power system and leads to increasing demand for balancing services. In this study, a short-term operation model of a district heating system is proposed to optimally schedule the production of both heat and power in a system with high wind power penetration. The application of the model in a case study system shows the increased flexibility offered by the coordination of power generation, consumption and heat storage units which are available in district heating systems.