Hybrid energy systems is an energy system which employs the combination of various renewable energy sources (solar, wind, biomass, hydro, and hydrogen fuel) with conventional energy sources to supply electricity. These systems have become reliable and most cost-effective as compare to single-source energy system for rural electrification. The objective of the present study is to address the demand for electrification of remote rural village in eastern Iraq. The methodology is carried out for optimization of hybrid energy system comprising (Photovoltaic, battery, diesel generator) by using HOMER to minimize the cost of energy and the greenhouse gas emissions. For different configuration of energy sources, the capital cost, net present cost and cost of energy is determined for the optimized hybrid energy system on the basis of the electric consumption demand for the selected site. The simulation results show that the most techno-economic analysis for hybrid energy system can feed the rural village in eastern Iraq to meet a daily load of 30 kW has consisted of 6 kW photovoltaic array, 7 kW power inverter, 20 units of battery (305 Ah and 6V) and 35 kW wind turbines. The optimized energy system has a cost of energy about $ 0.117/kWh and total net present cost by about $14800. The environmental assessment of the hybrid system shows that the greenhouse gases emissions will reduce about 25ton CO2/year (16968 kg/year) in the local atmosphere.