People living in remote rural areas have low income and so their ability to pay is low. On the contrary, the price of diesel fuel increases consistently and many countries have to import diesel fuel from other countries. Thus, for some countries nowadays, a centralized power supply solution using a diesel generator, is not a promising solution for rural areas. Alternative solutions have been sought by governments of many countries, focusing on utilizing renewable energy as an option for power supply in remote rural areas. Renewable energy has been utilized widely in rural areas of many countries however, only in small-scale systems for individual households or single organizations but not often as a large centralized power supply at the centre of villages where the magnitude and change of load are significant. Although, renewable energy systems have less operating costs than diesel generators, their initial capital cost is high and their technology requires a different strategy for ensuring their sustainable functioning in rural areas. There are many technical and non-technical issues that need to be considered.