Abstract:Shortage of electric power is a serious problem in Ethiopia. The population living in urban and semi urban areas connected to the national grid makes only less than 20% of the total. The remaining 80% of the population in scattered rural villages and have very remote chance to get electricity from the grid. The only realistic approach to electrify the rural areas seems therefore to be the off grid system. Study was conducted to assess suitability of stand-alone wind-solar PV hybrid power for Debmel village which is detached off the main grid line. The data required for this work (wind speed and sunshine hours) were obtained from the National Meteorological Agency (NMA) and analyzed using HOMER & MATLAB software's. The actual data used was from Dire-Dawa station, which is the closest meteorological station to the village. Both wind power and solar PV power potentials were evaluated from wind speed and sunshine hours of the station, respectively. The electrical load for a model community is considered and a community school together with a health post is included. For the feasibility study of the hybrid system HOMOR is used. By running the software the optimization results have been generated and arranged according to their least net present cost. Furthermore, a sensitivity analysis also carried out for the major sensitivity components of the hybrid system (like PV price, hub height and diesel price). The study revealed that the area has abundant solar energy potential (6.12 KWh/m 2 /day) but its wind potential is not as promising. This is partly attributed to the level at which wind speed measurement was taken, 2 m, instead of the recommended 10 m height. The result of the software shows that the most cost effective system, i.e. the system with the lowest net present cost, is the PV-generator-battery-converter setup. For this set-up, the total net present cost (NPC) is $ 155,875, the cost of energy (COE) is 0.415$/kWh, contribution from renewable resources is 91%.