The objective of this paper is to assess the economic viability of Saudi Arabia's renewable energyresources in electricityproduction in the rural and remote areas as against the use of dieselgenerators (DG). The methodologyemployed is to pick an existing isolated DG electric station for a rural community and assess thelevelized cost of energy (LCOE) generated for incrementalgeneration by adding either DG, wind electric conversion system(WECS), or solar Photo Voltaic(PV) electric system.

This paper presents an optimum sizing methodology to optimize the hybrid energy system (HES) configuration based on genetic algorithm. The proposed optimization model has been applied to evaluate the techno-economic prospective of the HES to meet the load demand of a remote village in the northern part of Saudi Arabia. The optimum configuration is not achieved only by selecting the combination with the lowest cost but also by finding a suitable renewable energy fraction that satisfies load demand requirements with zero rejected loads.