Energy plays significant role in the development of a nation. The conventional sources, though exhausting and not environment friendly are being increasingly used. Looking at limited supplies and various environment problems associated with its uses, renewable energy sources are getting attention. Municipal solid waste (MSW) is getting importance in recent years. Having fewer disposal problems, it is being considered as valuable bio-energy resources. The MSW management involves collection, transportation, handling and conversion to energy by biological and thermal routes. The present paper reports the results of physical, proximate and TGA/DTA analysis, used to select the most appropriate method of energy conversion. Based on the energy potential available, the feasibility of energy conversion through biogas production using available waste has been carried out. The CDM benefits have also been considered. The cost of generation with and without CDM benefits is Rs. 2.72/- and Rs. 2.81/- per KWH of energy, when biogas in IC engine in dual mode and Rs. 1.41/- and Rs. 1.36/- per KWH of energy, when using biogas in IC engine in pure mode against the energy from grid.