In this paper, we are studying an innovative solution to reduce fuel consumption and production cost for electricity production by Diesel generators. The solution is particularly suitable for remote areas where the cost of energy is very high not only because of inherent cost of technology but also due to transportation costs. It has significant environmental benefits as the use of fossil fuels for electricity generation is a significant source of GHG (Greenhouse Gas) emissions. The use of hybrid systems that combine renewable sources, especially wind, and Diesel generators, reduces fuel consumption and operation cost and has environmental benefits. Adding a storage element to the hybrid system increases the penetration level of the renewable sources, that is the percentage of renewable energy in the overall production, and further improves fuel savings. In a previous work, we demonstrated that CAES (Compressed Air Energy Storage) has numerous advantages for hybrid wind-diesel systems due to its low cost, high power density and reliability. The pneumatic hybridization of the Diesel engine consists to introduce the CAES through the admission valve. We have proven that we can improve the combustion efficiency and therefore the fuel consumption by optimizing Air/Fuel ratio thanks to the CAES assistance. As a continuation of these previous analyses, we studied the effect of the intake pressure and temperature and the exhaust pressure on the thermodynamic cycle of the diesel engine and determined the values of these parameters that will optimize fuel consumption. (C) 2011 Elsevier Ltd. All rights reserved.