A substantial number of off-grid olive oil mills in Morocco are powered by diesel-fired generators, which hugely contribute to air pollution and greenhouse gas emissions. In this research work, a biomass gasification combined heat and power (CHP) plant fueled with local by-products was explored as a renewable alternative to electrify off-grid olive oil mills in this country. The case study considered a gasification CHP plant with a rated power of 80 kW_e, in order to enable adaptation of the producer gas flow rate to abrupt changes in the power generation unit under dynamic operation. A downdraft gasifier and a producer gas conditioning unit were modeled under steady state operation using Cycle-Tempo, while the power generation unit was modeled in the Thermoflex simulation environment under partial and full load operation. Olive cake pellets and olive pruning chips were evaluated as biomass feedstock, with moisture contents ranging from 5% to 20% (wet basis). The results from the simulation of the gasification CHP plant showed net electrical efficiencies and CHP efficiencies around 18% and 35%, respectively. Finally, a profitability assessment of the gasification CHP plant was developed for 2 months of continuous operation, together with a sensitivity analysis. The results for the baseline scenario reveal a payback period of 7–8 years and a 68.5% accumulated profit based on the capital investment, which suggest that biomass gasification CHP plants can represent an economically feasible and sustainable solution for the electrification of off-grid areas in Morocco.