The increase of oil price during last five years has effected the performance of utility electricity services in remote area in Indonesia. Currently almost every isolated remote area electricity is powered by diesel generation system. This is due the inexpensive, quick set-up of diesel power plant installation in the past. However, since the oil price become more expensive the ever, the Utility Company suffers of high fuel and operation cost, resulting in less reliable electricity services, not only in electricity availability, but also the duration of service.

This paper describes a pilot poject of Hybrid Solar and Wind Energy System that is developed for improving the rural diesel powered electricity. The system consist of 32 kWp PV system, 4 by 10 kW Wind Turbine, 135 kVA diesel, backed-up with 700 kWh battery system, serving about 300 household in Nemberala Village, Rote Island, East Nusa Tenggara Province in Indonesia, and in operation since December 2008. The design consideration is briefly described in this paper, while the expected performance is estimated using computer modeling.

The simulation using the computer modelling suggest that the system provide an improvement in services and generation cost. Using the Hybrid system, the electric utility may increase the duration of service from 12 hours to 24 hours, while keeping the energy cost at 0.48 US$/kWh as compare to if otherwise produced by diesel gen-set at 0.56 USD/kWh.