The paper discusses derived from an earlier hypothetical study of remote villiages. It considers the policy implications for communities who have their own local power resources rather than those distributed through transmission from distant Sources such as darns. coal power plants or even renewables generation from wind farms, solar thermal or other resources. The issues today, post 911 and the energy crises in California, Northeast North America and Europe, signal the need for a new and different approach to energy supply(s), reliability and dissemination. Distributed generation (DG) as explored in the earlier paper appears to be one such approach that allows for local Communities to become energy self-sufficient. Along with energy conservation, efficiency, and on-site generation, local power Sources provide concrete definitions and understandings for heretofore ill defined concepts such as sustainability and eco-systems. The end result for any region and nation-state are "agile energy systems" which use flexible DG, on-site generation and conservation systems meeting the needs of local communities. Now the challenge is to demonstrate and provide economic and policy structures for implementing new advanced technologies for local communities. For institutionalizing economically viable and Sound environmental technologies then new finance mechanisms must be established that better reflect the true costs of clean energy distributed in local communities. For example, the aggregation of procurement contracts for on-site solar systems is far more cost effective than for each business owner, public building or household to purchase its own separate units. Thus mass purchasing contracts that are link technologies as hybrids can dramatically reduce Costs. In Short public-private partnerships can implement the once costly clean energy technologies into local DG system.,. (C) 2004 Elsevier Ltd. All rights reserved.