This thesis presents the design of a hybrid electric power generation system utilizing both windrnand solar energy for supplying model community living in Ethiopian remote area. The workrnwas begun by investigating wind and solar energy potentials of the desired site, compiling datarnfrom different sources and analyzing it using a software tool.rnThe data regarding wind speed and solar irradiation for the site understudy are collected fromrnthe National Metrological Agency (NMA) and analyzed using the software tool HOMER. Thernresults related to wind energy potential are given in terms of the monthly average wind speed,rnthe wind speed PDF, the wind speed CDF, the wind speed DC, and power density plot for thernsite. Whereas the solar energy potential, has been given in the form of solar radiation plots forrnthe site. According to the results obtained through the analysis, the site has abundant solarrnenergy potential and the wind energy potential is unquestionably high enough to be exploitedrnfor generating electric energy using wind turbines with low cut-in wind speed.rnThe design of a standalone PV-wind hybrid power generating system has proceeded based onrnthe promising findings of these two renewable energy resource potentials, wind and solar.rnElectric load for the basic needs of the community such lighting, water pumping, a radiornreceiver, flour mill and medical equipment for a health clinic has been suggested. Thernsimulations and design has been carried out using the HOMER software.rnBy running the software the simulation results which are lists of power supply systems havernbeen generated and arranged in ascending order according to their net present cost. Sensitivityrnvariables, such as range of wind speed, solar radiation, PV panel price and diesel price havernbeen defined as inputs into the software and the optimization process has been carried outrnrepeatedly for the sensitivity variables and the results have been refined accordingly.rnKeywords: hybrid renewable energy system, wind energy, photovoltaic, HOMER, PV-windrnhybrid, standalone system