Ethiopia is a developing country, where majority of the population lives in rural areas without access to electricity. 83% of the total population of the country use traditional biomass energy as a basic source of energy. In contrast, the country is endowed with sufficient renewable energy resources which can be used as a standalone electric energy supply system for electrifying remote areas of the country. These resources are mainly micro hydropower and wind which can be used individually or the best combination of one another. The application of hybrid renewable energy system has become an important alternative solution for rural electrification program.