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This work is focused on the energy recovery potential of olive-oil industry wastes in the region of Tizi Ouzou (north of Algeria). A theoretical modelling and simulation study of a small-scale CHP plant fuelled with olive pomace and olive tree pruning is carried out. The power plant proposed is composed of a downdraft gasifier, an externally fired gas turbine reaching an optimum electric power of 75.8 and 170.22 kW of thermal power. The electric efficiency achieved is 18.56% and the CHP efficiency is 60.26% for olive tree pruning gasification. The simulation results showed a satisfactory syngas lower calorific value (4.12–4.39 MJ/kg) and a gasification efficiency of 78.3–79.8%. The economic analysis of the plant shows a feasible payback period between 5 and 6 years with an interesting Profitability Index and Internal Rate of Return above 20% for both biomasses considered. Finally, the electrical energy generated with the plant proposed can cover the annual consumption of more than 46,000 inhabitants in Tizi Ouzou province. [ABSTRACT FROM AUTHOR]