The objective of the research work, reported in this paper is, to design and develop a down draft gasifier based power generation system of 75 KWe. A heat exchanger was designed and installed which recycles the waste heat of the hot gas, to improve the efficiency of the system. An improved ash removal system was introduced to minimize the charcoal removal rate from the reactor, to increase the gas production efficiency. A detailed analysis of the mass, energy and elemental balance is presented in the paper. The cold gas efficiency of the system is increased from 75.0% to 88.4%, due to the improvements made in the ash removal method. The Specific Fuel Consumption (SFC) rate of the system is 1.18 kg kWh(-1). The energy conversion efficiency of the system, from fuel wood to electric power was found to be 18%. Significant increase in calorific value of the producer gas was achieved by supplying hot air for gasification. (C) 2013 Elsevier Ltd. All rights reserved.