In this paper the results of the application of a model for the technical and economic sizing of the various components that make up medium sized wind-powered pumped hydrostorage systems are discussed. The characteristics and unit energy cost of each technically feasible combination of components are determined by applying the model in the island of El Hierro (Canarian archipelago). This enables the selection of the most viable composition for the system from an economic point of view given certain technical restrictions. The results of the application of the model (developed in Part 1) in El Hierro indicate that an annual renewable energy penetration of 68.40% can be achieved. This would mean a diesel oil saving of 7364 m(3) and a decrease in CO2 emissions of 20.91 Gg. Furthermore, the system would be economically competitive with conventional systems if fuel prices were 0.283 Euro/l. (c) 2004 Elsevier Ltd. All rights reserved.