AbstractBiomass waste-to-energy (WtE) generation is a potential pathway for green urban transition in developing countries which can contribute significantly to sustainable development goal 7: affordable and clean energy. However, unlike fossil fuel energy systems, the economic returns from WtE systems are low because WtE generation is capital-intensive and requires subsidies. This study examines the prospects of a sustainable biomass electricity generation from rice husk (RH) using a large dataset of rice milling activities in a fast paced urban transition economy. The study analyzes the viability of several RH biomass electricity generation scenarios using indicators such as net electricity output, economic returns (benefits), and levelized cost of electricity (LCOE). The results show that several mills/mill clusters generate sufficient daily RH that can power between 0.8 and 2.2 MW plant with a combined electricity output of about 500,000 MWh per annum. The economic analyses show that all RH biomass electricity generation scenarios return positive economic benefits under reduced social discount rates of 2–6%. Moreover, the LCOE of all scenarios are less than those of electricity generated from other sources. These results demonstrate that biomass waste-to-energy generation is viable for green urban development through low-carbon decentralized energy systems. Several policy implications of the findings are highlighted, including the need for policymakers and energy stakeholders to adopt sustainable biomass energy generation models such as “design, build, and operate” (DBO) to achieve sustainable WtE generation regimes that ensure green urban transition. Such a model will contribute to a circular economy and facilitates sustainable urban development that satisfies climate-related SDGs. Graphic abstract