In Ethiopia, electricity supply is extremely antiquated. When compared to other Africanrncountries, electric supply system and overall electric access in Ethiopia is very low. As in mostrnSub-Saharan Africa countries, Ethiopia experiences huge gap to access electric supply to urbanrnand rural areas. Accordingly, Melkey Hera village is one of a rural community situated inrnWestern Ethiopia, and experiences problems related to access to electric supply. In this village,rnextension of the grid is not yet practical. Therefore, the target of this paper is to investigate thernviability of a micro hydro, Photo Voltaic (PV) and Diesel Generator-battery hybrid powerrnsystem options to come up with the best techno-economic and optimum configuration forrnsupplying electricity to this village. The study conducted by an assessment of the predictedrnvillage energy demand, the available renewable energy resources, and then using the softwarerncalled HOMER. The optimal off- grid system design was established to combine hydro, solar PV,rnbattery energy storage and diesel generator. This system demonstrated to be more reliable inrnoperation, and the most cost-effective for the required level of service. The role of energy storagernin system operation also demonstrated to offer additional operational advantages in-terms ofrnreliability and cost savings. Overall, the design results show that the majority of energy obtainedrnis from hydropower, which accounts 79%. The PV module covers 20%, and diesel generator isrnonly 1% of the total load consumption. The renewable fraction (RF) of the project is 99%, whichrnimplies the total energy almost obtained from renewable system only and the system isrnenvironmentally friendly. The obtained hybrid system is cost competitive with $0.133/kWh, whichrnis somewhat good to satisfy the community needs. However, this is more than current energyrnprice in Ethiopia, which is $0.06/kWh. If due-merit is given to the electricity deficiency of therncountry, this higher cost should not be given concern. However, the project requires governmentrnsubsidies to make service affordable. Finally, this study identified that off grid hybrid micrornhydro-PV-DG-battery bank energy system is cost effective and environmentally friendly inrndelivering power for rural areas far from the grid. Moreover, the study provides valuablerninformation to the government and Non-government organization (NGO) about the renewablernenergy potential of the country for a rural electrification project in Ethiopia.rnKeywords: Hybrid System, Renewable Energy, HOMER, Photovoltaic, Micro Hydro, Feasibility