A large proportion of the world's population lives in remote rural areas that are geographically isolated and sparsely populated. This paper proposed a hybrid power generation system suitable for remote area application. The concept of hybridizing renewable energy sources is that the base load is to be covered by largest and firmly available renewable source(s) and other intermittent source(s) should augment the base load to cover the peak load of an isolated mini electric grid system. The study is based on modeling, simulation and optimization of renewable energy system in rural area in Sundargarh district of Orissa state, India. The model has designed to provide an optimal system conFigureuration based on hour-by-hour data for energy availability and demands. Various renewable/alternative energy sources, energy storage and their applicability in terms of cost and performance are discussed. The homer software is used to study and design the proposed hybrid alternative energy power system model. The Sensitivity analysis was carried out using Homer program. Based on simulation results, it has been found that renewable/alternative energy sources will replace the conventional energy sources and would be a feasible solution for distribution of electric power for stand alone applications at remote and distant locations.

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