Abstract. This paper introduces a mixed integer non-linear mathematical model for a simulation of a hybrid energy source consisting of photovoltaics (PV), wind turbines (WT) and pumped storage hydroelectricity (PSH). The concept of PV-WT-PSH has been well described and evaluated for sparsely populated or remote areas such as islands. Here, due to the rapid development of renewable energy sources and most importantly the variable (non-dispatchable) energy sources such as wind and solar, the idea of wind and solar powered PSHs has been investigated in the context of the national energy system. The economic and environmental impact of the proposed hybrid has been assessed. The results reveal that to cover almost 40% of the energy demand one should expect the energy cost to increase by 25%. Due to the usually limited natural resources available for island communities and the need to transport goods (such as oil or coal) from the continent (which increases their cost) and often very favorable solar and wind conditions, RES could easily compete economically with conventional power sources. But one would have to overcome the same problems which we face nowadays with the integration of RES, namely, their variable and non-dispatchable nature. As has already been mentioned, several approaches [8][9][10][11][12][13][14][15][16][17][18][19][20] can be applied, but the concept which incorporates at least three of them is a hybrid of photovoltaic (solar power), wind turbine and pumped storage hydroelectricity (PV-WT-PSH).Coupled wind and solar power sources tend to exhibit lower variability and it is well known that on an annual time scale they exhibit a strong complementarity [11,12,[21][22][23][24]. The concept of the temporal complementarity of a dual energy source can be explained by means of two sine functions which depict their variation in energy output; in the case of perfect temporal complementarity they will be out of phase with each other by π/2, or in other words they have a very strong (˗1) negative correlation. However, perfect complementarity is very unlikely, and on a shorter time scale (days, hours) it is almost non-existent. In consequence, periods will occur with no energy available from either wind or solar generation. The opposite may occur when both sources simultaneously generate energy at their nameplate capacity. In general, the ambitious goal of meeting demand purely using VRES would require the whole system to be oversized, which will intrinsically lead to significant energy surpluses.Therefore there arises a need to somehow transfer the energy in time, meaning that surpluses occurring in period t might be used in period t + x. This can be done by means of energy storage. The most mature (and practically the only) bulk energy storage technology is PSH, which uses the elevation difference between an upper and a lower reservoir to store excess energy and release it when the generation from WT and PV is not sufficient to cover demand. It is important to note that in the