In this paper, we assess the total cost of energy recovery from sewage sludge through anaerobic digestion with biogas utilization in combined heat and power (CHP) system. The important advantage of anaerobic digestion process is the production of biogas, which can be used to generate electricity and heat as a source of renewable energy. From this study, it can be retained that the generated thermal energy from the anaerobic digestion process meets the needs of the wastewater treatment plant (WWTP) and guarantees its self-sufficiency in heat. The surplus of renewable heat produced by CHP is not a primary factor to improve the economic viability of the process. Moreover, the sales of electricity output represent about 76% of the operating costs of anaerobic digestion process. Renewable energy production is not economically viable by its own, without considering the wastewater treatment function and the associated incomes. Nevertheless, sludge digestion helps to reduce the wastewater treatment costs mainly by giving a good source of revenue via electricity production. Copyright (c) 2014 John Wiley & Sons, Ltd.