Sustainable solid waste management can provide pathways for renewable energy generation. The Kingdom of Bahrain has witnessed burgeoning municipal solid waste (MSW) generation rate due to socio-economic development. The authorities of this Small Island Developing State, which is located in arid environment, plan to produce 5% of the total electricity demand from renewable energy sources by 2025 and then double it to 10% by 2035. The US Environmental Protection Agency’s Landfill Gas Emission Model software was used to estimate the generation of biogas from MSW at the Askar Landfill site. Results envisaged that maximum landfill gas (LFG) emission rates will be in 2020 following landfill closure by the end of 2019, as an intentional scenario, with a maximum electricity generation potential of 57.4 GWh that could provide power to 488 households. Revenues from carbon credits and electricity sales were US$97.8 million and US$64.8 million, respectively, for the period 2020–2035. The internal combustion engine exhibited the most viable option based on economic analysis of the cost of alternative LFG energy recovery technologies. Our work highlights the potential to use LFG-to-energy technologies to reduce the carbon footprint in arid climates for developing countries with substantial electricity subsidization.