More than one third of world population has no direct access to interconnected electrical networks. Hence, the electrification solution usually considered is based on expensive, though often unreliable, stand-alone systems, mainly small diesel-electric generators. Hybrid wind-diesel power systems are among the most interesting and environmental friendly technological alternatives for the electrification of remote consumers, presenting also increased reliability. More precisely, a hybrid wind-diesel installation, based on an appropriate combination of a small diesel-electric generator and a micro-wind converter, offsets the significant capital cost of the wind turbine and the high operational cost of the diesel-electric generator. In this context, the present study concentrates on a detailed energy production cost analysis in order to estimate the optimum configuration of a wind-diesel-battery stand-alone system used to guarantee the energy autonomy of a typical remote consumer. Accordingly, the influence of the governing parameters-such as wind potential, capital cost, oil price, battery price and first installation cost-on the corresponding electricity production cost is investigated using the developed model. Taking into account the results obtained, hybrid wind-diesel systems may be the most cost-effective electrification solution for numerous isolated consumers located in suitable (average wind speed higher than 6.0 m/s) wind potential regions. (c) 2006 Elsevier Ltd. All rights reserved.