Abstract- Bangladesh is a densely populated country located at the South-East corner of Asia. Only 48.5% of people here have access to the grid electricity. This paper provides a comprehensive study of the contemporary renewable energy scenario in Bangladesh in terms of distribution, research and infrastructural development in the country. Renewable energy is the smartest solution of increasing energy crisis caused by using fossil fuels. But sometimes it faces question of reliability which can be overcome by using various renewable power sources which would also be cost effective for developing and under developed countries like Bangladesh. This is the ultimate solution to shorten power crisis instead of depending only on the national grid supply which is mostly run by fossil fuel.  Especially in rural areas there is a scarcity of water during harvesting period and our proposed scheme is a great solution to overcome this problem which would led to an economic development of Bangladesh. We are providing an overview of utilizing renewable energy with higher reliability using concept of smart grids where we have used wind power, solar power, biogas, biomass and micro hydro power for rural and remote areas. We are proposing a hybrid system which is expected to run effectively both on grid and off grid operation to utilize maximum possible renewable resources. The overall load dispatch scenario is controlled by the availability of renewable power, total system load demand and the proper management of the battery bank. The incorporation of a battery bank makes the control operation more practical and relatively easier. A well designed hybrid energy system like smart grid can be cost effective, has a high reliability and can improve the quality of life in remote areas.