Throughout the world there are hundreds of thousands of villages, remote communities, islands and commercial sites which do not have power or are supplied on an individual basis by small gas or diesel generator sets, small wind turbines and photovoltaic systems. Many of these sites are located in countries where centralized utility systems only exist in urban or industrial areas. The average cost to extend utility power lines, not including new power plant capacity, is approximately $15,000 to $30,000 (US) per kilometre at 1990 prices.

Diesel engine driven generating sets have the largest market share by far of all sources of remote power. Over 10 million diesel generator sets are utilized world-wide to provide power in locations remote from electrical grids. Unlike most energy sources which have a high capital cost with high operational costs, diesel generating sets have a low capital cost and high operating cost. Diesel engine manufacturers are conducting research to increase reliability, reduce emissions, and reduce manufacturing and operating costs.

The high costs are due primarily to the cost of purchasing the diesel fuel and delivering it to where it is needed. Operation and maintenance of the diesel generators may also contribute to high cost at remote sites. These costs generate a powerful economic incentive to find more cost effective alternatives. For many remote locations, the most attractive option is to be able to generate a significant amount of the power at the site.