Egypt has embarked on an ambitious desert land reclamation program in order to increase total food production. Energy planners for these desert agriculture locations have chosen diesel generation power technology because minimization of the initial capital cost of a power supply system is their top priority. This heavy reliance on diesel generation has negative effects on the surrounding environment including soil, groundwater, and air pollution. Although good solar and wind resource prospects exist for the use of cleaner hybrid power systems in certain desert locations, little research has been done to investigate the economic potential of such systems in Egypt's desert agriculture sector. Using optimization software, we assess the economics of hybrid power systems versus the present diesel generation technology in a remote agricultural development area. We also consider the emission reduction advantages of using hybrid systems. Interestingly enough, optimization results show that hybrid systems are less costly than diesel generation from a net present cost perspective even with the high diesel fuel price subsidies. Since hybrids are also more environmentally friendly, they represent a strong step towards achieving sustainable desert agriculture. (c) 2004 Elsevier Ltd. All rights reserved.