This paper reports an integrated system consisting of a diesel genset and a Compressed Air Energy Storage (CAES) unit for power supply to isolated end-users in remote areas. The integration is through three parts: direct-driven piston-compression, external air turbine-driven supercharging, and flue gas waste recovery for super-heating. The performance of the integrated system is compared to a single diesel unit and a dual-diesel unit with a capacity of electricity supply to a village of 100 households in the UK. It is found the fuel consumption of the integrated system is only 50% of the single-diesel unit and 77% of the dual-diesel unit. The addition of the CAES unit not only provides a shift to electrical energy demand, but also produces more electricity due to the recovery of waste heat. Crown Copyright (C) 2016 Published by Elsevier Ltd. All rights reserved.