Research on wind turbine Operations & Maintenance (O&M) procedures is critical to the expansion of Wind Energy Conversion systems (WEC). In order to reduce O&M costs and increase the lifespan of the turbine, we study the application of Set-Valued Observers (SVO) to the problem of Fault Detection and Isolation (FDI) and Fault Tolerant Control (FTC) of wind turbines, by taking advantage of the recent advances in SVO theory for model invalidation. A simple wind turbine model is presented along with possible faulty scenarios. The FDI algorithm is built on top of the described model, taking into account process disturbances, uncertainty and sensor noise. The FTC strategy takes advantage of the proposed FDI algorithm, enabling the controller reconfiguration shortly after fault events. Additionally, a robust controller is designed so as to increase the wind turbine's performance during low severity faults. Finally, the FDI algorithm is assessed within a publicly available benchmark model, using Monte-Carlo simulation runs.