In isolated islands, usually diesel generators supply electric power. However, there are problems, e.g., a lack of fossil fuel, environmental pollution etc. So, isolated island, e.g. Miyako island, installs renewable energy power production plants. However, renewable energy power production plants are very costly. This paper presents an optimal configuration of power system in isolated island installing renewable energy power production plants. The generating system consists of diesel generators, wind turbine generators, PV system and batteries. Using the proposed method, operation cost can be reduced about 10% in comparison with diesel generators only from simulation results. (C) 2007 Elsevier Ltd. All rights reserved.