The railway system in Bangladesh, particularly the level crossing system, needs significant advancements, including a shift towards using renewable energy to power these crossings. As a solution, this study proposes optimal hybrid systems powered by renewable energy on an automated railway level crossing system, which is reliable, efficient, and sustainable. The main contribution of this study is to introduce an optimal hybrid renewable energy-based automated railway level crossing system in Bangladesh, focusing on technical and economic evaluation, emissions, and sensitivity assessment using HOMER Pro. The proposed system examines the optimal outcome for a 1 kW vertical-axis wind turbine and a 0.440 kW photovoltaic system at five selected locations. The results reveal satisfactory net present cost values amounting to USD 8495, USD 8505, USD 8564, USD 8262, and USD 8357 for Narayanganj, Cox’s Bazaar, Noakhali, Dinajpur, and Rajshahi respectively. Moreover, HOMER Pro indicates that the photovoltaic-wind turbine–grid-connected model offers a lower Cost of Energy which is around 0.03 USD/kWh compared to other configurations. The Internal Rate of Return for the selected locations are 20 %, 33.7 %, 31.5 %, 5.2 %, and 4.6 % for Narayanganj, Cox’s Bazaar, Noakhali, Dinajpur, and Rajshahi, respectively. The developed structure is projected to have a payback period ranging from 4.57 to 13.29 years across the five selected locations. Furthermore, the proposed systems reduce greenhouse gas emissions by up to 44.23 % compared to a grid-only system. Additionally, sensitivity analysis is performed by varying wind speed and solar irradiation to emphasize the robustness of the proposed systems.