Hybrid renewable energy systems (HRESs) have become increasingly popular, especially for isolated regions. This thesis describes the design of a HRES for the isolated Ha'apai Island group in Tonga following a devastating cyclone which happened in 2014. Several renewable power generation and storage possibilities were investigated; solar, wind and battery were found to be feasible for Ha'apai. The conceptual design of a new energy storage system, the Subterranean Ocean Energy Storage System (SOESS), is also discussed as a possible alternative to batteries and a more viable substitute for an ocean renewable energy storage (ORES) system. For the proposed Ha'apai system, the optimum system configuration (solar 450 kW, wind 550 kW, battery 1,216 kAh/4,864 kW) with 90% renewable penetration was obtained using the HOMER software. Based on the optimum system configuration, load flow simulations of both the previous system and the proposed HRES were performed in DIgSILENT PowerFactory. The results of the load flow analysis show that all the transformers and transmission lines in both systems operate safely in both peak and nominal load conditions, and that the voltage levels of all LV buses are within the acceptable range of ±5%. The detailed system topology of the proposed HRES is discussed from the system implementation point of view. A unique set point control algorithm for the start-up/shut-down of the diesel generators was developed. The system dynamic performance was simulated according to the control logic during the three main switching events in DIgSILENT PowerFactory. The dynamic simulation results indicate that the proposed system would operate safely with acceptable voltage and frequency oscillations. This thesis could be used as a template for the design of other isolated HRESs with high renewable penetrations.