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Renewable energy is one of the major inputs for the economic and social development of any country. In case of the developing countries, the renewable energy sector represents a critical importance in increasing electrical energy which requires huge investments to meet them. The Hybrid Renewable Energy System (HRES) provides the consumer with reliable and cheap electricity by reducing the dependence on one renewable source. Therefore optimal combination and sizing design of HRES has a very important role in the use of renewable energy effectively and economically. Egypt has a huge potential for renewable energy sources which encourages the implementation of renewable energy projects. This paper presents an economic analysis of applying a HRES to provide Communication and Information Technology (CIT) Centre in Mansoura University-Egypt, with its needs of electricity. A modified Particle Swarm Optimization (PSO) technique is applied to optimize the capacity sizes of different components of hybrid PV/wind power generation system. A Matlab code is developed to represent the proposed method. The results indicate the optimal configuration and sizing of the proposed HRES. Capital budgeting and economic analysis indicate that HRES is technically feasible and economically viable.

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