This paper addresses the problem of day-ahead generation scheduling for isolated micro-grids with renewable energy generators. Geothermal, solar and diesel generator are considered as the only sources for supplying electricity to the micro-grid. The aim of this paper is to illustrate how demand response measures can be utilized to meet the demand during supply shortage and mitigate load shedding. The main objective is to meet the forecasted demand by optimal scheduling of available and forecasted generation sources and reduce total cost. The problem is formulated as non-linear optimisation problem and solved using GAMS software. Simulation results show that utilizing demand response measures during the day-ahead generations scheduling problem can improve the reliability and reduce total costs.