This paper is about renewable energy system simulation. The renewable energy system is designed for rural areas in Miri, Sarawak. Solar and wind energy are the main focus of this thesis. Hence, photovoltaic (PV) energy system and wind turbine energy system are used in this simulation. In case of energy system failure, diesel engine generator is used to backup the renewable energy system. MATLAB/SIMULINK and PSIM software are used to simulate the renewable energy system.