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Electricity has become a part and parcel of modern life. The world is constantly developing, and the electricity demand is inevitably increasing with it. It is a big challenge for the power generation organizations to cope up with this increasing demand. For a developing country like Bangladesh, this challenge is even bigger. Bangladesh has many remote areas which are deprived of grid connectivity. In this article, system design and performance evaluation are conducted on a solar battery‐based hybrid renewable energy system (HRES) with diesel backup for a school in a remote area located in the northern part of the country, where conventional power grid connectivity is not available. From field survey, a load demand of 10.468 kWh/day for a normal working day and a peak demand of 3.3 kW are considered in this work for the proposed site. For simulation purpose hybrid optimization model for electric renewable, very well‐known software is used. The solar radiation data required for the work are collected from NASA Surface meteorology and Solar Energy database. Analyzing the load requirements and metrological data a solar‐battery diesel generator‐based HRES is proposed for the school. From the analysis and simulation, the Net Present Cost (NPC) for the proposed system is found USD 6191 with a Cost of Energy (COE) of $0.125/kWh. Further, a comparative study is done and the proposed system can reduce the COE and Green House Gas (GHG) emission of about 29.85% and 69% respectively than the conventional power plants. Finally, a techno‐economic analysis is conducted with sensitivity analysis, time series analysis, and multiyear analysis to prove the rigidity of the proposed system.

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Energy consumption is increasing rapidly; hence, the energy demand cannot be fulfilled using traditional power resources only. Power systems based on renewable energy, including solar and wind, are effective and friendly for the environment. Islanded hybrid microgrid systems (IHMS) are relatively new in this industry and combine two or more sustainable sources, such as wind turbines, solar photovoltaic (PV), and other renewable alternatives, ocean, wave, and geothermal energy, etc. While sustainable, long-lasting power sources are the best choice to satisfy the growing energy demands, they are still not yet ready to be used on a large scale due to their stochastic characteristics. Furthermore, integrating these sources into the existing energy system can cause high technical difficulties, due to the stochastic nature of solar and wind in the conventional grid system and common stand-alone framework. A review of research and applications of the effective hybridization of renewable energy sources is therefore essential to address those technical and economic issues and ensure system stability, reliability, and cost-effectiveness. This article discusses the challenges that might arise when a PV plant and a wind power station are combined to produce power for the conventional main grid or in a stand-alone system. In addition, this analysis provides light on optimization approaches for improving power quality and cost-effectiveness in a solar and wind integrated IHMS. Voltage fluctuation, frequency deviation, and the uncertain nature of solar irradiation and wind sources are significant challenges for both grid-connected and standalone hybrid systems. This study then provides an overview of the control strategies which might help enhance the integration of the IHMS in producing electricity for distribution to the grid-connected load and the islanded load. In this study, the possible issues that can hinder the smooth integration of these renewable sources have been discussed. Finally, this study discusses the recent platforms being used in IHMS as well as the potential of dispatch strategies on solar and wind-integrated IHMS.