Olive sector residues could contribute to increased use of renewable energies, especially in those areas where the olive crop is produced. This paper determines the maximum amount of electrical and thermal energy which could be obtained in Andalusia from olive sector residues, and the economic value that could be obtained from these energy uses. For this, the current data on installed power and electrical and thermal generation are compared with the calculated potential data which would be obtained at full capacity. The results show there is a 69.23% wastage of olive sector residues for energy purposes. Thus, using the resources at full capacity, 3.9 million tons of biomass per year could be obtained for energy purposes. Currently, only 2 million tons of biomass are used for energy purposes. This wastage translates into a below potential generation of electrical and thermal energy. The full use of these residues would allow 83.9% and 64.9% higher generation of electrical and thermal energy, respectively. The results obtained also show that the economic value of olive sector biomass is higher than the market price value, with the average values for each use being 248.20 €/t for domestic thermal use, 165.04 €/t for electrical use and 139.50 €/t for industrial thermal use. Thus, it is considered feasible that the olive sector biomass could be used to a greater degree than at present. In this sense, it is recommended that more electricity generation plants and thermal-generating systems be put into operation. • There is a 69.2% wastage of olive sector residues that could be used for energy purposes. • The full use of olive by-products would account for 6.2% of renewable electricity. • The full use of olive by-products would account for 26.7% of thermal generation. • Better use of residues would promote the start-up of 55 and 1762 electricity and thermal plants, respectively. • The economic value of olive sector biomass allows the value chain to be covered. [ABSTRACT FROM AUTHOR]