Conventional energy technologies are not environmentally friendly, are not renewable, and also the cost of using fossil and nuclear fuels will go higher and higher (anecdotal evidence suggests that consumers will be paying three times their current bill 5years from now). Therefore, renewable energy sources will play important roles in electricity generation. This paper highlights the advantages of renewable technologies, like future prospects for the poor population, being environmentally friendly, and also available in abundance. This paper points outs the factors seeking hydrogen energy and fuel cell technology to eradicate environmental disasters. This paper is significant as it looks into optimal utilization of renewable energy sources with major emphasis on H-2 optimization and fuel cells application utilizing cogeneration technology. This paper discusses the multiple hydrogen production pathways from different sources, including renewable and nonrenewable sources, H-2 safety, and also barriers to use of hydrogen energy. This paper recommends different types of quantitative and qualitative methods for optimal energy planning, and different types of fuel cells are also discussed. This paper explains a hybrid system inclusive of renewable energy, with its types and benefits. Finally, this paper concludes that Australia could switch from conventional fossil fuel technology to hybrid energy inclusive of renewable energy.