Abstract
According to Electricity Acceleration Law of Rural Area recently, the needs for replacement of a small scale diesel power generation facility which supplied electricity to 10-50 households Remote Islands has been revealed due to high operating and maintenance cost of Diesel Power Generation. Optimization of electric power system for Small Remote Islands must be made considering the economics, reliability and stability as power sources and estimation of total construction cost of those power stations. For its purpose, an assessment of power generation options such as Photovoltaic, Fuel cell, Wind-hybrid was implemented, economic evaluation of power supply shows the Photovoltaic, Fuel Cell for few household's islands and Diesel, Wind-hybrid for more inhabited islands. Power supplied by Diesel shows the best response to increasing electric demand and system reliability even with its lower economic value. Those who are in charge of power planning have to pay attention to system reliability, stability and operating characteristics of candidate's power supply besides its economics.