Nowadays, millions of people in remote areas do not enjoy an uninterrupted power supply due to the lack of connectivity to the main power grid. Under such circumstances, the only feasible way to access electricity is typically local power generation, often relying on diesel engine–generator sets or photovoltaic arrays. However, on many occasions, this configuration does not fully exploit all available local resources, including biomass. Indeed, most isolated areas have access to local biomass production from agricultural activities, which can be used for local electricity generation through gasification. This paper addresses this challenge by developing an innovative optimal sizing tool for hybrid power plants integrating biomass gasifiers, specifically designed for isolated areas with access to local biomass production. The novel approach models the particular features of biomass gasification technologies, including long on/off times or restrictive ramping limits. To this end, an efficient methodology based on representative weeks is proposed, which is combined with a solution strategy based on the multi-cut Benders’ decomposition, thus resulting in a tractable framework that can deal with a huge amount of data efficiently. One of the most salient features of the new proposal is the consideration of local biomass production, which is included in the methodology through an original algorithm. Accordingly, a certain amount of biomass is sourced locally, leading to more accurate and reliable results. The new methodology is applied to a benchmark off-grid community in Ghana. The results demonstrate that the use of gasifiers reduces the project cost notably (by 90%) driven by the reduced biomass cost, which can be supplemented by locally generated biomass from agricultural activities. In addition, this technology constitutes a clean source of energy, reducing the total CO2 emissions by 83% compared to a baseline case in which only diesel generators are used. Moreover, it is demonstrated that biomass gasification can effectively act as base load power generation technology to reliably cover most of the local demand, thereby enabling a clean and inexpensive dispatchable local power generation. Finally, a sensitivity analysis reveals that the economic feasibility of the plant is more sensitive to the biomass cost than the selling price of biochar, resulting in a 33% increment in the total project cost when the price of biomass increases from 0 to 0.4 $/kg. Nevertheless, gasification remains as the predominant power generation technology even under unfavorable prices.