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© 2016 IEEE. Some areas lack access for electricity and grid extension may not be economically feasible solution. Thus off-grid technologies are normally the suitable options. Among the off-grid technologies, micro hydro-power often matches local conditions. However, the main problem with these micro power plants is lack of significant storage capacity. This work proposes the utilization of compress air storage to improve the run of the river micro hydro power plant operational economic gains and also increases its reliability. A generic hourly optimization technique is developed to analyze the optimized daily operational strategy followed by the hydro turbine and compressor motor equipment provided that the forecasted load and water flow are available. The plan of hydro plant situated at Dor River in Pakistan is investigated and the optimization problem is solved using AIMMS software. The obtained results are well presented and discussed.

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