In this paper, a PV/Wind integrated hybrid power energy system is analyzed using the dynamical simulation method. The market for the distributed power generation based on renewable energy is increasing, particularly for the standalone mini-grid applications. The main design components of PV/Wind hybrid system are the PV panels and the wind turbine. The case study is realized using the meteorological data for a Typical Metrological Year (TMY) for the city of Belgrade, in Serbia. The dynamical analysis is based on the transient system simulation program TRNSYS 16. The purpose of the study is to design a realistic energy system that maximizes the use of renewable energy and minimizes the use of fossil fuels. The reduction in the CO2 emissions is also analyzed in the paper. (C) 2011 Elsevier Ltd. All rights reserved.