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Wind energy plays an important role in the sustainable energy transition towards a low-carbon society. Proper assessment of wind energy resources and accurate wind energy prediction are essential prerequisites for balancing electricity supply and demand. However, these remain challenging, especially for onshore wind farms over complex terrains, owing to the interplay between surface heterogeneities and intermittent turbulent flows in the planetary boundary layer. This study aimed to improve wind characteristic assessment and medium-term wind power forecasts over complex hilly terrain using a numerical weather prediction (NWP) model. The NWP model reproduced the wind speed distribution, duration, and spatio-temporal variabilities of the observed hub-height wind speed at 24 wind turbines in onshore wind farms when incorporating more realistic surface roughness effects, such as the subgrid-scale topography, roughness sublayer, and canopy height. This study also emphasizes the good features for machine learning that represent heterogeneities in the surface roughness elements in the atmospheric model. We showed that medium-term forecasting using the NWP model output and a simple artificial neural network (ANN) improved day-ahead wind power forecasts by 14% in terms of annual normalized mean absolute error. Our results suggest that better parameterizations of surface friction in atmospheric models are important for wind power forecasting and resource assessment using NWP models, especially when combined with machine learning techniques, and shed light on onshore wind power forecasting and wind energy assessment in mountainous regions. [Display omitted] • Onshore wind energy forecasting and assessment are challenging over complex terrain. • Surface friction is properly considered in an atmospheric model and machine learning. • Winds simulation improved with an integration of surface friction over mountain. • Our study improved wind power predictability over complex terrain. [ABSTRACT FROM AUTHOR]