Developing countries are facing critical energy crises. Ever-increasing prices of fossil fuels have resulted in serious impacts on the lives of common people in many developing countries. The environmental phenomena are being seriously affected consequent to increased use of fossil fuels. The renewable energy offers better choice as it is clean source of energy. In view of the limited supply of fossil fuels, biofuels have been considered as future fuels. The demand of biogas technology is increasing and various researchers are trying to improve it. These are lowcost systems and can be run with very small budget. An increased focus is being placed over the use of anaerobic treatment for a number of reasons, including; energy recovery; minimizing the harmful effects of suspended solids; cutting down the cost of waste treatment to almost half over aerobic systems; resultant digestate to be used for land farming; and its compactness as a treatment system. This review focuses on the low cost bioenergy sources in developing countries of the world. Various practical aspects of biogas generation and factors influencing it have been presented. The potential of various biomasses, especially algal biomass, has also been discussed.