The field of electrical engineering with renewable energy systems has witnessed a remarkable improvement due to an increase in the world's growing population as available resources become limited. This study proposes an optimal and efficient hybrid energy management system that combines photovoltaic, hydro, and fuel cell renewable energy resources that can solve the drawbacks of current energy setups and offer a dependable power source for stand-alone purposes. This novel AC-linked hybrid energy system features a comprehensive power management strategy with actual weather data and a realistic load demand profile. The HOMER Pro technique is employed for calculating the emission of toxic gases, system economic benefits, sensitivity analysis and cost minimization of the system while providing sustainability. The numerical outcomes show optimal results as compared to the existing systems in the literature. The system consists of 55 kW of PV modules, a 30 kW FC generator, and 40 kW of hydropower, suggesting optimal and excellent economic and environmental sustainability. This system appeared to be an especially cost-effective solution, with a net present cost (NPC) of $248,773 and a cost of energy (COE) of $0.0546/kWh. The results show that the system can meet energy needs while utilising the available resources efficiently in different weather conditions. The proposed system has the potential to increase the sustainability and dependability of power generation in a variety of applications and aid in the design and implementation of alternative energy systems, particularly in off-grid or remote areas. The proposed system can be extended to other such locations that will provide a scalable and flexible solution for electricity generation, making it suitable for a variety of applications, from small rural power plants to large industrial power supplies. Overall, the proposed study provides an important resource for development in hybrid energy system design and operation, with far-reaching implications for the transition to a sustainable and low-carbon future.