Increasing electricity demand and concerns about climate change and fossil fuel consumption have highlighted the importance of renewable energy resources and storage systems. This paper proposes a method for exploring untapped pumped hydro storage potentials to accommodate intermittent renewable energy generation profiles. Hourly measured data from 2022 in Benzie County, Michigan, United States, were gathered for system sizing and a thorough, realistic analysis. By employing the multi-objective grey wolf optimization algorithm, we formulated optimal sizing and energy-management strategies for three different scenarios. Unlike similar studies, the 3rd with triple objective functions (OFs) scenario aims to maximize both reliability and ecological OFs while minimizing the cost OF. It has shown promising results with multiple solutions, considering economic, environmental, and reliability factors. A case study conducted in Crystal Lake, Michigan, revealed that although Crystal Lake would function only as a micro-hydro power facility, it is a promising and huge storage unit with a substantial storage capacity of around 14.9734GWh. The system investigated is significant in the USA due to its rapid deployment capabilities, minimal construction requirements, and ease of integration with the distribution grid. The fuzzy logic method was employed to identify the best non-dominant solution among the other solutions. These outcomes include a notably low levelized cost of energy at 0.046147$/kWh, a robust index of reliability of 99.705%, and a significant reduction in CO2 emissions amounting to 7.9142×103 tons/year, when considering the triple OFs. The paper’s methodology provides valuable insights for regions aiming to utilize renewable energy from untapped storage sources.