A well designed hybrid energy system can be cost effective, has a high reliability and can improve the quality of life in remote rural areas. The economic constraints can be met, if these systems are fundamentally well designed, use appropriate technology and make use effective dispatch control techniques. The first paper of this tri-series paper, presents the analysis and design of a mixed integer linear mathematical programming model (time series) to determine the optimal operation and cost optimization for a hybrid energy generation system consisting of a photovoltaic array, biomass (fuelwood), biogas, small/micro-hydro, a battery bank and a fossil fuel generator. The optimization is aimed at minimizing the cost function based on demand and potential constraints. Further, mathematical models of all other components of hybrid energy system are also developed. This is the generation mix of the remote rural of India; it may be applied to other rural areas also.