This paper proposes an optimal power system model for coastal area of Bangladesh where sufficient renewable energy source is available for hybrid power generation. The simulation and analysis is performed on a highly recognized renewable energy research tool called 'HOMER' considering the electrical demand of a coastal area, Patenga. Generation of electricity from different types of fuel affects on environment creating tons of greenhouse gases and thereby causing global warming. In this situation, a power system model with shortest possible effect on environment is of great interest now a days. Remarkable outline of this paper is that the proposed model enable sharing of power between grid and power generated from renewable sources which is known as ongrid hybrid renewable energy model and thereby reducing the generation cost of energy. Another significance of the research is to create a new era in the green energy research for coastal area of Bangladesh.
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