The purpose of the study was to examine the potential of palm biomass, taking a case of the Juaben Oil Mills in the Ashanti Region of Ghana, which has over the years generated electricity for its operations from its waste products and other benefits that have accrued to the company and the host community. Primary data collection and intensive desk study approaches were employed albeit qualitatively, to describe the use of palm biomass as supplementary source of electricity generation in Ghana. The study showed that there is enough potential (waste by-products) for electricity generation to supplement current production from hydropower to meet growing demand. However, policy and institutional arrangements do not easily allow generation and extension for communal benefits. The authors therefore recommend a relook at existing policy and institutional arrangements to help promote this alternative source of energy for efficient and sustainable domestic and industrial uses. We also argue that ensuring efficiency in energy generation calls for R&D into its commercial potential and explore more efficient means of managing industrial and other agro biofuel wastes in developing economies. Future energy policy must also create and harness diversity of available biomass resources and reduce the delivery risks of the resources.