This paper presents a methodology for determining the specifications of an isolated R.E.S. power production system on an environmentally sensitive ecosystem. The wind and solar power constitute the primary power generation system and diesel generators act as backup. Real wind and solar potential measurements are used. The wind atlas of the island has been constructed. The specifications of the proposed system are optimized by the life cycle cost method. The renewable energy sources (R.E.S.) total annual energy production exceeds 90%. As a result, the dependence on the diesel generator set annual energy production is limited and the system’s operational cost is not practically influenced by the increasing fossil fuel prices. The introduction of a small size desalination plant for the production of drinkable water is also investigated. Both the available R.E.S. potential and the minimization of environmental impacts are considered for the siting of the equipment. The methodology of the present paper may be applied to other regions rich in R.E.S. potential, where the introduction of small size environmentally friendly isolated R.E.S. power systems is investigated.