In the present context, energy access to remote rural households through local energy generating systems has been recognized as a cost effective and extent efficient option. With increased emphasis on ecofriendly technologies and high fuel cost associated with conventional energy generation, the use of renewable energy resources (small hydro, biomass, solar, wind energy etc.) are being explored. The present paper is focused on the optimal sizing of a stand-alone Integrated Renewable Energy System (IRES) which comprises the resources of micro hydro power (MHP), biogas, biomass, solar and wind energy. Initially, a demand response (DR) strategy based on energy consumption scheduling of appliances has been suggested and modelled in the paper. This strategy aims to minimize the peak hourly energy consumption of the study area. Further, different combinations of system components without and with DR strategy were considered and optimized for power reliability criteria of 0% and 5% unmet load. It has been found that significant amount of savings in system sizes and costs are obtained with DR strategy compared to system without DR. (C) 2017 Elsevier Ltd. All rights reserved.