The technological advances have been accompanied by an enormous demand for energy. Non-renewable energy sources have supplied this energy so far, but it has also led to an erosion of the worldwide environment. The US/Mexico border region has some unique advantages and/or opportunities. The availability of high solar radiation, considerable amounts of non-potable water, and human and/or animal wastes can be used for generating hydrogen and biogas as alternative fuel sources. New technology can be used to produce hydrogen from salted water and this gas can be stored and later, used to fuel an electricity generator and consequently generate potable water as bi-product. Therefore, photovoltaic cells coupled to an electrolizer can be used to generate electricity in a sustainable manner. The research described here simulates complete energy systems based on commercial devices and developed using EXTEND software and has the capability to perform comparisons, predictions and evaluations among different processes for energy generation. In addition, it demonstrates alternatives in local energy production, and the feasibility of remote house hybrid system located in the El Paso/Juarez border area. (c) 2005 Elsevier Ltd. All rights reserved.