The aim of this paper is to provide the core of a CAD/CAA tool that ca
n help designers determine the optimal design of a hybrid wind-solar p
ower system for either autonomous or grid-linked applications. The pro
posed analysis employs linear programming techniques to minimize the a
verage production cost of electricity while meeting the load requireme
nts in a reliable manner, and takes environmental factors into conside
ration both in the design and operation phases. While in autonomous sy
stems, the environmental credit gained as compared to diesel alternati
ves can be obtained through direct optimization, in grid-linked system
s emission is another variable to be minimized such that the use of re
newable energy can be justified. A controller that monitors the operat
ion of the autonomous/grid-linked systems is designed. Such a controll
er determines the energy available from each of the system components
and the environmental credit of the system. It then gives details rela
ted to cost, unmet and spilled energies, and battery charge and discha
rge losses.