In this paper, a new variable-speed wind energy conversion system (WECS) with permanent magnet synchronous generator (PMSG), Vienna rectifier and three-level neutral point clamped (NPC) inverter is proposed. Vienna rectifier is used for flux vector control of PMSG, maximum power point tracking (MPPT) of wind turbine, PMSG efficiency optimization, and balancing of two rectified DC voltages. As power conditioner, a three-level NPC inverter is used to deliver energy to the grid. Vector control of the inverter provides the ability to regulate power factor to any desired value. The results of two simulations (for back-to-back inverter and the proposed topology) are presented and compared. The results verify improved efficiency of the proposed WECS compared to WECS using back-to-back inverter.