Exploiting renewable energy is a critical greenhouse gases reduction strategy for China, especially in areas where new power plants are needed. Challenges in energy storage, however, always complicate the design of renewable energy-dominated power generation systems. This study attempt to provide a solution to the energy storage problem through the synergy of both the power supply and demand sides. Based on local natural energy resources endowments, this paper applies the hybrid optimization model for multiple energy resources and load types to analyse the feasibility of satisfying energy demand. To verify the model's technological and economic feasibility, this research applies its synergy model to a 2.8 km(2) isolated island in the South China Sea. The simulation results demonstrate that the cost of energy and net present cost of the power supply system are $0.212/kW h and $127 M when hydrogen energy storage equipment is used, and $0.178/kW h and $101 M when traditional-battery energy storage equipment is utilized. This study also reveals that using flywheels to supplement the hydrogen and traditional battery energy storage equipment could reduce the cost of energy by 5.6% and 3.4%, respectively. In addition, power system demand-side management can further reduce the cost of energy by approximately 20% for all technology scenarios considered in this study. A carbon emissions analysis demonstrates that the carbon reduction rates of the proposed power systems are between 87.7% and 95.1% compared with a fossil-energy based power system. In brief, this study indicates that solar and wind energy combined with appropriate energy storage equipment can meet the energy demand of the island. (C) 2017 Elsevier Ltd. All rights reserved.