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Diesel generators in small electricity grids are not always used in an efficient way. The reason for this is twofold. First of all the efficiency of a diesel generator is dependent on the ratio between the average power and the peak power of the generator. The smaller this ratio, the lower the efficiency. Furthermore some loads can regenerate energy. In small grids this energy is mostly not needed elsewhere and should be dissipated. A solution solving both above mentioned problems is using an energy storage device in the system. This storage can be used for peak shaving and storing regenerated energy. This paper focuses on the costs of a generator-set with energy storage. This calculation is done for the general case and for six different power management strategies: only generator, peak power shaving, dynamic solution, max on or off, average power and only storage. Calculation of the costs shows that adding an energy storage device lowers the cost for all methods. Calculations show that the max on or off method is the best choice.