World is going for renewable and Pakistan also must go for it. There are number of option for renewable i.e., solar, hydro, biomass &wind. Cost effectiveness/technology does not allow everyone to contribute for energy generation. Biomass is the most reliable and auspicious method for generation of energy because this method provides economical & sustainable alternative to other renewable and fossils fuels plants at small and medium levels. Biomass is a renewable and ecofriendly, but not known. This study discusses a number of biomass sources, provides financial analysis of these biomass resources. This analysis shows that both biogas for cooking and electricity can be high recommendable for both rural and urban areas. Utilization of biomass energy is more feasible with favorable NPV and high cost benefit ratio. Waste management for metro areas can be easily addressed through effective way by utilization into biomass energy. The SWOT analysis highlights how to solve major problems and effectively utilize opportunities for future. There is need for some government initiative to support small and medium sector to flourish this renewable concept as part of “Clean and Green- Pakistan”. Supervisor:- Dr. Atiq-ur-Rehman