Cost of a Kilowatt - Diesel Generator Analysis

“Loading is everything, and diesel power is not cheap.”

For temporary power and distributed energy, diesel generators are currently the most popular solution. However, determining the cost to run a diesel generator, or how much does it cost to run a diesel generator, isn't exactly straightforward. In this post, along with the attached video, we’ll aim to demystify the process of determining exactly what it costs to generate a kilowatt hour (kWh) of power with an internal combustion diesel generator.

It turns out that there isn’t a simple straightforward answer to the question. There are several factors to consider, including: the generator's purchase cost, diesel generator maintenance cost per kwh, replacement cost, fuel cost, and generator efficiency, all of which affect the overall generator operating cost. In order to make sense of it all, the video walks us through what can be learned from fuel maps, including the specific fuel consumption of a diesel generator in g/kwh and l/kwh, how to account for parasitic losses, and whether or not the generator is operating in the "sweet spot.”

To summarize, the diesel generator cost per kwh, or diesel generator cost per kw, can range from $0.80 - $5.00 per kW, with generator running expenses remaining highly variable in 2026 depending on load. The video provides the details about how we arrive at those numbers. For comparison, our portable wind turbine produces power between $0.05 - $0.30 per kW depending on wind conditions, although the factors impacting the costs are different than diesel. That subject is covered in extensive detail in our previous blog post.

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