This thesis is intended to assess the energy recovery options from Municipal solid wastes that arerncollected from Arada Subcity. In the analysis, two particular schemes are analyzed and evaluatedrnfor their economic viability. They are Energy recovery through incineration and Landfilling. Arndetail analysis of each of these options is done to determine how much energy can be recoveredrnby implementing them. Also the detail economic evaluation is conducted to decide on the morernviable scheme. The analysis shows that the implementation of the Landfill gas-to-Energy schemernincurs the total estimated capital cost of around 37 million birr. The electricity generationrnpotential of this scheme is around 23MW, which will make a financial value of aroundrn160,000birr.While the capital cost required to implement incineration with energy recovery isrnestimated around 120 million birr. By implementing this option, around 2600MW of electricityrncan be produced, which makes a saving of 18,049,681birr, where the current electricity sellingrnprice is 0.29 birr/kWh. The analysis is done for the waste capacity of 25,000t per year.