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The characteristics of power produced from photovoltaic PV and Wind systems are based on the weather condition. Both the system are very unreliable in itself without sufficient capacity storage devices like batteries or back-up system like conventional engine generators. The reliability of the system significantly increases when two systems are hybridized with the provision of storage device. Even in such case, sufficient battery bank capacity is required to provide power to the load in extended cloudy days and non-windy days. Therefore the optimal sizing of system component represents the important part of hybrid power system. This paper summarizes recent trends of energy usage from renewable sources. It discusses physical modeling of renewable energy systems, several methodologies and criteria for optimization of the Hybrid Renewable Energy System HRES.