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This paper presents a techno-economic assessment for a unique Isolated Hybrid Power System (IHPS) design for remote areas isolated from the grid which also has the capability of being operated as a smart μ-grid. The share of renewable energy sources in resource poor developing countries is low. In these countries an increase in the share of alternative energy (wind, water and sun) delivered with inexpensive operationally robust generation and delivery systems is seen to the way forward. In our design also incorporates a novel storage system to increase the effectiveness of the Isolated IHPSs previously reported in the literature. The configuration reported is a system consisting of, the wind and sun powered generation complemented with batteries, fuel cell unit and a diesel generator. The modelling design and simulations were based on Simulations conducted using MATLAB/SIMULINK, and HOMER Energy Planning and Design software tools. The design and simulation of a new storage approach incorporating Hydrogen Peroxide (H2O2) fuel cell (increasing the efficiency of the fuel cell from 35% to 65%) and a single board computer (Raspberry Pi) used for the energy management and control the system are the novel features of our design. The novel control strategy implemented also includes a synchronization capability that facilitates IHPS to IHPS or IHPS to Main-Grid connection. In the paper after briefly but comprehensively detailing the design and simulations we will present the results on which we conclude that smart independent systems that can utilize indigenous renewable energy with a capability of being able to synchronize with the grid or each other are the most optimal way of electrifying resource poor developing countries in a sustainable way with minimum impact on the environment and also achieve reductions in Green House Gases.