Renewable energy sources are gradually becoming an alternative to fossil fuel-based power sources. It helps in overcoming the energy crisis and minimizing the emission of toxic gases as well as ensuring a step towards achieving a carbon-neutral environment. For the uninterrupted supply of power in the area of the weak distribution of electricity, clean energy sources are proven to be a feasible solution for electrification. This work aims to design a unique concept of a biogas-fuelled powergenerating system and analysis performance that can enhance renewable-based power generation. The optimization of the biopower generation system has been carried out through the HOMER software. The power plant's performance with a digital control system has been investigated in MATLAB at fully loaded conditions. The efficacy of the system has been validated experimentally on a hardware setup resulting in an increase in power generation efficiency of about 14%. A comparative experimental study has been presented to exhibit the benefit of the designed system over the conventional bio-power generation system like the minimization of power losses and reduced no of associated equipment as required in the conventional system. Besides that, the estimated cost of the design of the power plant and its payback period has also been investigated for a limited period of years. It has been revealed that the proposed design of the Biogas power plant and its performance is substantially efficient and can be recommended for utilization in a microgrid or any small-scale power generating system.