One of emerging technologies under development in the advanced countries is considered as RDF(Refuse Derived Fuel) power generation, which could meet both the requirement of an alternative energy resource utilization and $CO_2$ reduction. This paper deals with the effect to the thermal effiency and CO2 reduction of RDF firing power generation. The statistical data of domestic MSW generation in last year in small and medium cities for evaluating the merits of the RDF power generation were used. The analysis for RDF power generation compared to the existing incinerator w/o(or w/) power generation shows around 20.6%(10.0%) up in the total thermal efficiency and 57.0%(31.4%) up in the $CO_2$ reduction respectively.