AbstractMunicipal solid waste (MSW) is one of the most well‐known biomass resources that can be utilized to produce renewable energy. Numerous countries are plagued by the proliferation of waste, particularly organic waste that can be utilized for energy recovery. Palestine suffers from inefficient solid waste management, and only recently have a few projects focused on bioenergy production been implemented. Throughout the years, the city of Tulkarm experiences power outages which cause a challenge to the Palestine Technical University‐Kadoorie campus in Tulkarm. Thus, the possibility of energy recovery from the organic portion in Palestine Technical University‐Kadoorie was evaluated. The analysis of an economic impact included discussions of a number of economic aspects, including Levelized cost of energy, internal rate of return, present worth, annual worth, and payback period. On the other hand, a carbon dioxide savings analysis and gas emission were evaluated. The outcomes of the energy optimization demonstrated that the suggested system could supply the institution with an average of roughly 7 MWh of electrical energy. According to the economic study, this project offers 0.25 million dollars in present value, 0.144 million dollars in annual value, a 13 percent internal rate of return, a payback period of 6 years, and a levelized cost of energy of 0.11 dollars for each kWh generated. Additionally, the environmental assessment revealed that this system might reduce CO2 emissions by around 8,343,778 tons. For effective waste management, energy recovery, and emission reduction, it is advised to implement anaerobic digestion technology.