The increasing energy demand has led to a decrease in the availability of fossil fuels, making it necessary to seek renewable alternative energy sources. One of the alternative energy solutions that is currently being widely developed is biomass. Biomass can be converted into renewable energy through a process called gasification. Gasification is the conversion process of solid fuels, often referred to as Municipal Solid Waste (MSW), which can be processed into Biomass Refuse Derived Fuel (RDF) for the three-stage gasification process to produce syngas. Syngas can then be used as fuel for diesel engines to generate electricity in a “Waste to Electric” system. This study utilizes a diesel engine with a dual-fuel system. The objective of operating the diesel engine with a dual-fuel system is to determine the impact of using syngas, obtained from the gasification of RDF pellets, in a diesel engine with a dual-fuel system. The dual-fuel diesel system operates using two types of fuel: diesel fuel and gas fuel. The gas fuel used is syngas resulting from the gasification of RDF biomass pellets. During the gasification process, variations in the air ratio will be adjusted in the pyrolysis, oxidation, and reduction zones with air ratio comparisons of 0:10:0, 1:8:1, 2:7:1, and 1:7:2. The syngas produced from the gasification process will be used as fuel for the dual-fuel diesel engine. The performance characterization of the dual-fuel diesel engine will be conducted by testing the engine at 5000 rpm with load variations from 500 watts to 5000 watts in 500-watt increments, and by varying the mass flow rate of the syngas by adjusting the syngas valve opening. This study aims to demonstrate that RDF has promising potential as a renewable electricity source. The three-stage gasification process has proven effective in converting RDF into high-quality syngas. The dual-fuel diesel engine can operate stably and produce electricity with lower emissions compared to conventional diesel engines. The utilization of RDF biomass waste for power generation through three-stage gasification and dual-fuel diesel engines offers a sustainable solution to waste management issues and provides environmentally friendly electricity on Batam Island.