NOVELTY - The loop system has a steam and power generation sub-system including a solid fuel burner (11) for burning fuel particles from a biomass fuel preparation sub-system, and heating water in a boiler (12) into steam. A generator converts mechanical energy into electrical energy. A multi-effect distillation (MED) unit produces distilled water from condensed steam from a turbine for recycle to the boiler without requiring chemicals for wastewater treatment. The biomass fuel preparation sub-system includes a rotary dryer (5), which is preheated with flue gas from the boiler.    USE - Closed loop system for cogeneration of electric and thermal energy for energy plantation of quick growing trees i.e. Gliricidia Sepium trees, for providing a source of biomass, a biomass fuel preparation sub-system in close proximity to the energy plantation for drying and reducing the biomass into a fuel particle for producing lumber, plywood and particle board, in rural areas.    ADVANTAGE - The system improves the biomass production and heat production efficiency of the selected tree species, and ensures adopting intercropping and composting practices so as to obtain optimum end results. The system ensures that a scientific tree farm (STF) sub-system is environment-friendly, and prevents erosion, promotes biodiversity and maintains slow climate change, and ensures utilization of a rotary, cascading, direct, single shell, center-fill dryer so as to maximize the utilization of the waste heat energy in the flue gas to evaporate moisture from the wood. The heat energy in the exhaust steam is utilized by the MED unit, where distilled water is used as a boiler for eliminating the need for utilization for a water treatment system and chemicals so as to reduce boiler maintenance costs and generate required electric power in reliable, stable and environment-friendly manner.    DESCRIPTION OF DRAWING(S) - The drawing shows a flowchart illustrating operations of a closed loop system for cogeneration of electric and thermal energy.    Raw wood storage (2)    Wood chipper (4)    Rotary dryer (5)    Solid fuel burner (11)    Boiler (12)