Micro-grid power systems that utilize renewable energy sources, such as solar PV and wind turbines, are a viable solution for providing electricity to remote areas that are not connected to national grids. By combining various renewable energy sources and utilizing battery storage and backup diesel generators, these hybrid systems can provide reliable off-grid power. This paper focused on optimal sizing and feasibility study of a micro-grid system consisting of solar PV, wind turbines, battery banks, diesel generator, and a converter for the rural area of Gashamo village, located in the eastern part of Jarar Zone in the Somali Region of Ethiopia. The hybrid system was designed based on the primary load demand of the village, which was 2895 kWh/day, with a peak load of 176 kW, deferrable energy of 225 kWh/day, and a deferrable peak load of 37 kW, with a COE of $0.162/kWh. The HOMER (Hybrid Optimization Model for Electric Renewable) software tool was utilized to simulate and optimize the off-grid system and energy management system. Solar PV and wind energy were considered as primary sources to supply electricity directly to the load and to charge the battery bank when excess energy generation was available, with the diesel generator serving as a backup. During the design of the power system setup, simulation and optimization were conducted based on load demand, climatic data, economics of integrated system components, and other parameters, with the aim of minimizing the total NPC and levelized COE to select an economically feasible and technically capable hybrid power system.