Distributed energy, also known as district or decentralized energy, is generated and stored by a variety of small, grid-connected devices referred to as distributed energy resources, or distributed energy resource systems. The Distributed Generation (DG) systems can increase energy system reliability, reduce peak power requirements, and improve energy infrastructure resilience. In this study, a DG system using renewable energy sources and energy storage was introduced for the whole University of Alabama at Birmingham (UAB) campus. The energy sources for this DG system were photovoltaic arrays, a natural gas-powered Internal Combustion Engine (ICE), and wind turbines. The energy storage components use battery cells. TRNSYS was the software used in modeling the whole system. Optimization has been performed by using TRNSYS, GenOpt and TRNOPT tools. By using Hooke-Jeeves optimization method, the optimum DG system has been proposed for UAB campus. The purpose of this study was to determine the optimum size combination of the above-mentioned equipment to generate cost savings in campus operations and reduce greenhouse gas emissions. The preliminary results showed considerable savings over the traditional system.