The main objective of this work is to describe the application of Decentralized sliding mode observer (DSMO) based fault detection and isolation (FDI) scheme for nonlinear variable speed wind energy conversion system (VSWECS) designed by a polytopic Quasi LPV representation, which is able to describe it as a convex combination of submodels defined by the vertices of a convex polytope. Stability conditions are performed by using Linear Matrix Inequalities (LMIs). In this work, we focus on the estimation and the reconstruction of the possible actuator and sensor faults to guarantee the efficiency and the continuous operation of this system. Simulation results are given to demonstrate the validity and the effectiveness of the proposed approach.