This paper presents energy requirements of J&K state of India with the present policies and future planning for the best utilization of the available resources. There will be acceleration in the future developmental graph in the country like India resulting in bulk of the energy demand. The procedures and methods applied currently adopted in renewable field aims for exploring possible energy production while considering the environmental impact. The hilly region such as J&K and Ladakh region has tremendous amount of renewable energy potential. The presentation of this paper aims the cost analysis of hybrid power system in the region. For optimization and sensitivity analysis, HOMER pro version 3.23.8 is used. The renewable resources for selected area are analyzed in Global Solar atlas (GSA) and Global wind atlas (GWA) and the result is compared with the meteorological tower data set. The modeling of the hybrid system is purposed on a 10% of load variability and as a result of the study, the levelized cost of energy (LCOE) from the hybrid system is obtained 0.0466 USD/kWh which will be 30 to 50 percent cheaper than the priceofelectricityfrom conventional system.
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