The aim of any industrial plant, which is dealing in the energy sector, is to maximise the revenue generation at the lowest production cost. It can be carried out either by optimizing the manpower or by improving the performance index of the overall unit. This paper focuses on the optimisation of a biomass power plant which is powered by G50 hardwood chips (Austrian standard for biomass chips). The experiments are conducted at different operating conditions. The overall effect of the enhanced abilities of a reactor on the power generation is examined. The output enthalpy of a generated gas, the gas yield of a reactor and the driving mechanism of the pyrolysis are examined in this analysis. The thermal efficiency of the plant is found to vary from 44 to 47% at 400◦C, whereas it is 44 to 48% for running the same unit at 600 ◦C. The transient thermal condition is solved with the help of the lumped capacitance method. The thermal efficiency of the same design, within the constraint limit, is enhanced by 5.5%, whereas the enthalpy of the produced gas is magnified by 49.49% through nonlinear optimisation. The temperature of biomass should be homogenous, and the ramping rate must be very high. The 16% rise in temperature of the reactor is required to reduce the mass yield by 20.17%. The gas yield of the reactor is increased by up to 85%. The thermal assessment indicates that the bed is thermally thin, thus the exterior heat transfer rate is a deciding factor of the pyrolysis in the reactor.