Renewable energy is becoming increasingly important to isolated power systems (IPS) as they seek to reduce their emissions and operational costs. Australian IPS typically supply energy to consumers using both renewable and diesel generation termed a hybrid IPS. As renewable penetration increases within a hybrid IPS, a potential conflict arises, with the diesel generators unable to lower their output response below their minimum operating set point. The load set point is predetermined to ensure engine efficiency and preserve engine reliability. Under high renewable penetration, diesel load set points produce surplus generation, which must be absorbed via regulating devices such as dump loads or energy storage systems. Hence systems configured for high renewable penetration currently involve increased complexity, expense and waste. This paper investigates no load diesel technology as one solution to minimising surplus generation under high renewable energy penetration, thus reducing system complexity and fuel consumption. The paper presents a power system model for no load diesel integration finding that such an approach can reduce the need for energy storage systems.