Pakistan is faces significant challenges in meeting its energy demand and consumption needs for consumers. This country's energy production from primary sources such as petroleum and natural gasses is incompetent in fuel-use and hence unable to meet feasibility cost. With an increasing population, Pakistan's energy consumption per capita has been steadily rising. This behaviour is leading to critical energy issues, especially in remote rural areas. This trend in rising energy costs and demand factors are similar to those in the energy markets in the South and South-East Asia. The primary energy sources in Asia continent, including fossil fuels, are insufficient supply to meet this growing demand in production and thus resulting in frequent electricity blackouts. Consequently, renewable energy sources such as solar photovoltaic (PV) and wind power have substantially started to produce energy and to provide a huge portion of Pakistan's daily energy needs apart in conventional energy currently. However, these sources are not yet as reliable, conventional energy bases have a challenge for sustainable energy production. As a result, renewable energy factors nonetheless initial started have effectively stabilized energy consumption, particularly for green electricity with net-zero carbon emissions. The aim of this study is to evaluate the feasibility and cost-effectiveness of integrating a microgrid hybrid system with combined (solar PV/ wind power) renewable energy as well as conventional fossil fuel generators. This evaluation focuses on predicting energy production and its costs using Hybrid Optimization of Multiple Energy Resources (HOMER) software, and to enhance the electricity standards at NUST (National University for Sciences and Technology) University, Pakistan. The proposed methodology of microgrid hybrid system, when evaluated using HOMER software, shows a significant improvement in energy stability and cost efficiency. Moreover, this proposed system can reduce reliance on fossil fuels by a substantial percentage, enhances the predictability of energy production, and optimizes its energy consumption. These can achieve better performance metrics in terms of reliability, cost, and environmental impact; feasible solution for Pakistan and the developing countries. This proposed methodology offers a novel approach by integrating renewable energy sources with conventional generators to create a balanced and efficiency factor by microgrid system. This hybrid system goals as an investigation is to optimize this energy production, reduce carbon emissions, and provide a more stable and cost-effective energy supply.