Given the significant impact of the UN 2015 agenda on sustainable development, the search for eco-friendly and efficient energy solutions has intensified. The renewable based hybrid systems have emerged as feasible solution in this context. This paper explores the potential of utilizing a hybrid energy system (HES) from a distinctive perspective — addressing the challenges of load shedding at the distribution level. The HES configuration in this investigation includes photovoltaic (PV) array, wind turbines (WT), battery storage unit (BSU) and diesel generator system. The research involves simulations, optimization, and sensitivity analysis for a residential community in the southwestern part of Pakistan, which frequently experiences load shedding. Grasshopper optimization algorithm (GOA) is applied to simultaneously minimize the levelized electricity cost (LEC), payback period (PBP), and loss of power supply probability (LPSP). Simulations compare different HES configurations based on the estimation of local renewable energy potential and the load shedding schedule of the utility company. The optimal solution, with

$N_{PV}=110$

$N_{WT}=2$

, and

$N_{BSU}=16$

, was selected, resulting in a minimum LEC of 6.64 cents/kWh and a PBP of 7.4 years. These results are validated using the particle swarm optimization algorithm (PSO). The performance of HES is benchmarked against conventional solutions, such as standalone diesel generators, battery-based uninterruptible power supplies (UPS), and combinations of generators and UPS. The findings demonstrate the significant superiority of HES over conventional solutions in terms of reduced LEC, shorter PBP and reduced carbon emissions. Finally, the sensitivity analysis examines the impact of varying component prices, feed-in tariff rates, meteorological conditions, and load demand variations on the LEC and PBP of the HES.

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