Electrical grid power supply is one of the highest challenges for rapidly growing telecom network industry in Ethiopia. The objective is providing dedicated low cost power supply to off-grid and unstable grid power connected to telecom network sites located in the rural and sub-urban areas of ethio telecom in North West Region. Most of the rural areas are not connected to the grid power and, even though they are connected, the availability is very limited to provide uninterrupted power supply. Telecommunications industry requires efficient, uninterruptible and cost-effective hybrid power systems. This investigation considered a solar- photovoltaic (PV) with DG hybrid, Solar with Grid, DG with Grid and backup battery hybrid power supply system suitable for Global System for Mobile communication (GSM) base stations, core sites and microwave repeater sites. This thesis presents a methodology and necessary analytical tools to evaluate alternative hybrid optimal power solution for telecom network with embedded power supply in remote areas. This work have been done based on simulation and optimization of hybrid system for ethio telecom network equipment’s under NWR. Hybrid optimization model for electrical renewables (HOMER) software used for the design of the proposed power system. The conversion of standalone diesel generator and grid power system to hybrid make telecom power system optimized. The thesis result shows the optimal hybrid power system can save the diesel generator fuel cost from 56 – 92%, due to unstable grid power mobile network interruptions busy hour $6,308,822.44 USD save and decrease 𝐶𝑂2 emissions as compared to the traditional diesel generator.