Gusau, a city in Zamfara state, Nigeria, chosen as the research location is faced with a shortage of power supply as electricity supply from the national grid is unstable and inadequate, besides the majority of those in the remote area are isolated from the grid. The location has the potential for renewable resources. To end this challenge of power supply shortage, a hybrid electric power system, which employs the use of battery storage, solar and wind energy system with a diesel generator as a reserve to provide adequate power to 120 residential apartments in a settlement isolated from the grid is being designed. The result shows the total yearly electricity production is 168,545 kWh/yr, the yearly AC primary load consumption is 67160 kWh/yr, and the excess electricity is 88581 kWh/yr and the AC primary load was met.Solar energy is the most promising renewable energy in the location but the PV module, which converts solar energy into electricity is not efficient as the PV module power output reduces at the peak of sunlight. An experiment was conducted to improve the efficiency of the PV module using a multi-concept cooling technique at a derating factor of 80% and 95%. At a derating factor of 80%, an appreciable increase in the module output power was achieved with module + Al hint sink & water-cooling of the module surface temperature to 20°C.An output power increase of 20.96 W at 12:45 pm and an efficiency of over 3% were achieved. This increase in power output exceeds 250 watts with 0% losses. At a derating factor of 95%, an increase in power output from 250w to 262.4w was achieved.The MATLAB modelling of the hybrid PV/wind/diesel generator system shows the PV module contributes more power to the energy system at a temperature of 20°C than at 45°C.Hence, there is an increase in the PV power output to the hybrid energy system with increased module efficiency.My sponsors motivated this research, as they wanted me to work in this area.This thesis also contributes to the creation of microgrid ancillary services market, and the provision of voltage control ancillary services to low voltage distributed generation since it iscurrently applicable to large power networks.