Abstract: With gradual depletion of non-renewable energy resources, people now turn their attention to renewable energy resources. This paper introduces straw resources in Yancheng and analyzes the social economic background of electricity generation from straw. Then it analyzes the technology and equipment conditions for electricity generation from straw based on a number of materials and empirical research. Income-cost analysis method is used to verify economic benefit feasibility of the technology. Results show that the full use of available straw can generate about 0.37 billion yuan per year. Based on previous studies, it is deduced that generation of electricity from straw can reduce CO₂ and SO₂ emission and dust pollution. Therefore straw is a clean resource and electricity generation from straw has strong ecological benefits. Furthermore, there are good external social benefits of electricity generation from straw. Finally, appropriate measures are proposed to redress problems of generating electricity from straws in Yancheng.