This paper explains the basic functions of a fuel cell, design concept and configurations, together with its merits to generate electricity. This paper, however, does not discuss the functions of either fuel reformer or inverter, which are two other major components of fuel cell technology. In the last two decades fuel cell technology has been researched and implemented as a most promising technology in the future. In addition to energy security and environment protection, hydrogen and fuel cells are the first step in a smooth transition to a hydrogen-based economy. Fuel cells as alternative energy is increasingly used in various small and large applications, both stationary and portable. Fuel cell technology can generate electrical and thermal energy, thereby increases its overall efficiency. The applications are highly suitable and viable in developing countries as well.