The potential of biomass gasification fur the electrification of rural areas in developing countries is investigated, both technology oriented (the prospects for the technology) and user oriented (is the technology feasible for the situation?). The analysis is carried out by means of an annuity costing model, taking proper account of the time value of money. Care has been taken to create an equal basis of the differences in technical lifetime of certain components of the technical systems evaluated. The evaluation method distinguishes two types of parameters: technology parameters and site parameters. The analysis tool thus provided yields discriminating conclusions about the feasibility of biomass gasification under different circumstances. Part of the technology parameters is a coherent costing model provided here. The site parameters include prevailing fuel prices, which are provided for a number of potential target countries. The capacity range considered is covered by an investigation of three cases (10, 40 and 160 kW). Mass production of gasifier systems is identified as a prerequisite for further utilization of the technique in rural electrification. Target cost levels are indicated on the basis of allowable investment in view of applicable discount rates and equipment utilization rates under typical rural electrification circumstances. The evaluation methodology developed is also proposed as an assessment tool for quick scans of project feasibility.