Rahul J. and R.K. Pachar / International Energy Journal 25 (2025) Special Issue 1B (245 – 254) ©2025. Published by RERIC in International Energy Journal (IEJ), selection and/or peer-reviewed under the responsibility of the Organizers of the “International Conference on Energy Transition and Innovation in Green Technology (ICETIGT 2024)” and the Guest Editors: Dr. Prabhakar Tiwari and Dr. Shekhar Yadav of Madan Mohan Malaviya University of Technology, Gorakhpur, India. www.rericjournal.ait.ac.th 245 Abstract – This paper presents a comprehensive economic and technical analysis of a hybrid solar and wind energy microgrid system. Utilizing HOMER software for simulation, it evaluates the feasibility of integrating solar photovoltaic (PV) panels and wind turbines in a microgrid to meet energy demands efficiently and cost-effectively. The study considers key parameters such as capacity shortage, energy costs, and system components, including PV, wind turbines, storage systems, converters, and the grid. The economic analysis reveals the Total Net Present Cost (NPC) and Levelized Cost of Energy (LCOE), offering insights into the financial viability of the hybrid system compared to traditional energy sources. The technical analysis focuses on energy production, consumption, and system efficiency, highlighting the performance of individual components and the overall reliability of the microgrid. The findings demonstrate the potential for significant cost savings and enhanced energy security through the adoption of hybrid renewable energy systems. The study concludes with recommendations for policymakers and stakeholders, emphasizing the benefits of renewable energy integration and the importance of supportive policies to facilitate the transition to sustainable energy solutions. Keywords – Economic and Technical Analysis, Hybrid Microgrid, Renewable Energy Integration, Solar Photovoltaic (PV), Wind Turbines. 1. INTRODUCTION Renewable energy integration into the global grid is vital for sustainability and combating climate change. Unlike fossil fuels, renewable sources like hydro, wind, solar etc. are abundant and generate minimal greenhouse gases, making them crucial for reducing carbon footprints and mitigating global warming [1]. Fossil fuel energy production is the leading cause of global CO2 emissions, so transitioning to renewables is key to meeting international climate goals, including the Paris Agreement [2]. Additionally, renewable energy diversification strengthens energy security by reducing reliance on imported fuels. This shift not only aligns with environmental objectives but also strengthens the energy supply's resilience, making it a vital element of the global strategy to tackle climate challenges [3]. Beyond environmental advantages, the integration of renewable energy drives economic growth and job creation. The renewable energy industry has become one of the fastest-growing sectors globally, generating millions of jobs and encouraging innovation in energy technologies [4]. This shift also fosters local economic development by enabling decentralized energy production, particularly in remote and underserved areas [5]. Advancing grid infrastructure and energy storage is vital for integrating renewable energy effectively. Smart * Department of Electrical Engineering, Swami Keshvanand Institute of Technology, Management & Gramothan, Jagatpura, Jaipur 302017, Rajasthan, India. 1 Corresponding author; Tel: + 91 9530098449. E-mail: jinendra.r@gmail.com. grids, paired with advanced storage systems, enhance management of renewable energy’s intermittent nature, ensuring stable and reliable supply [6]. Supportive policies and regulatory frameworks also play a main role by offering incentives and establishing targets for renewable energy adoption [7]. 2. LITERATURE REVIEW Renewable Energy Microgrids (REMs) are localized networks integrating renewable sources like solar, wind, and biomass to enhance energy reliability and reduce reliance on fossil fuels. They are a sustainable solution for decentralized energy production, with research emphasizing their design, optimization, and performance. Early research on REMs emphasized the technical and economic feasibility of integrating multiple renewable sources. For instance, work by Ahmed et al. [8] demonstrated that combining solar and wind power in microgrids could significantly improve system reliability and efficiency. Similarly, studies by Zhang et al. [9] examined the benefits of incorporating energy storage systems to mitigate the intermittency of renewable sources, enhancing overall grid stability and performance. Optimization techniques have also been a significant focus in REM research. Liu et al. [10] explored various optimization models for sizing and dispatching renewable energy resources in microgrids, highlighting the role of advanced algorithms in improving cost-effectiveness and operational efficiency. These studies underscore the importance of sophisticated control strategies to balance supply and demand dynamically. Integrating Solar and Wind Energy: A Technical and Economic Perspective Jinendra Rahul* , 1 , and Ramesh Kumar Pachar* www.rericjournal.ait.ac.th