This paper proposes the utilisation of the direct matrix converter (DMC) to regulate the power transfer between a permanent magnet synchronous generator (PMSG) based wind energy conversion system (WECS) and the power grid. By connecting the PMSG at the output terminals of the DMC, control actions are simplified, implementation is facilitated since fewer sensors are required, and a WECS with a more compact structure is achieved because it is not necessary to use a transformer to compensate for the DMC voltage ratio. The DMC operation is controlled by the singular value decomposition (SVD) modulation technique and the four‐step switching strategy. For power regulation, an maximum power point tracking (MPPT) algorithm based on the wind turbine power curves technique is used in conjunction with the field‐oriented control technique and a proportional‐integral compensator. In the developed prototype of the WECS described, modulation, MPPT, four‐step current switching, control algorithms, and signal measurements are implemented on a single microcontroller unit. Finally, experimental results demonstrate the effectiveness of the proposed WECS in regulating the transfer of active and reactive power adequately and simultaneously with the power grid.