Urban and remote communities face persistent challenges associated with centralized power grids. This study investigates the potential of hybrid renewable energy systems with integrated storage solutions as a decentralized alternative to improve efficiency and resilience. The research combines a comprehensive theoretical review of configurations, focusing on hydro pumped storage and hydrogen storage, with the development and application of an optimization model for a remote community exposed to desertification risks. Generation and surplus forecasts were used to evaluate storage strategies, and a multicriteria optimization algorithm was applied to enhance demand-supply matching. The base-case system consists of 13.5 kW of hydropower, 20 kW of solar PV, and 6 kW of wind capacity, assessed over a 35-year project lifetime. Results indicate that solar and hydropower contribute approximately 90% of total generation, achieving a levelized cost of energy of 0.05 & euro;/kWh, an internal rate of return of 17.5%, and a payback period of 5 years. The system can export up to 42 000 kWh annually to the grid or nearby users. Additionally, the integration of green hydrogen provides further flexibility, resulting in a levelized cost of hydrogen of 3.5 & euro;/kg, an IRR of 10%, and a 14-year payback period.