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Abstract: This paper analyses the hybrid solar and hydro (SHE) system as a unique technological concept of the sustainable energy system that can provide continuous electric power and energy supply to its consumers and the possibilities of its implementation in Europe and areas with similar climate. The sustainability of such system is based on solar photovoltaic (PV) and hydroelectric (HE) energy as renewable energy sources (RES). For the purpose of connecting all relevant values into one integral SHE system, a mathematical model was developed for selecting the optimal size of the PV power plant as the key element for estimating the technological feasibility of the overall solution. Sensitivity analysis (parameter analysis) was made for the model, where local climate parameters were varied: solar radiation, air temperature, reservoir volume, total head, precipitation, evaporation and natural water inflow. It has been established that, apart from total head (which is to be expected), solar radiation, hydro accumulation size and natural water inflow have the biggest effect on the calculated power of the PV power plant. The obtained results clearly show a wide range of implementation of the new energy source (SHE system), i.e. from relatively cold climates to those abundant in solar energy, but also with relatively small quantity of water, because it only recirculates within the system. All this points to the necessity for further development of hybrid systems (RES+HE systems) and to the fact that they could play an important role in achieving climate objectives. [Copyright &y& Elsevier]