Due to its morphological composition which includes mostly combustible material (plastics, paper, textiles, etc.), municipal solid waste is potentially a valuable raw material for use in power generation. On the other hand, content of incombustible fraction (glass, metal, rocks, etc.) reduces its value, particularly when solid municipal waste must be processed into the form of granulate as in case of co-combustion with coal in pulverized-fuel or fluidized-bed boilers. The process of granulation reduces also the costs of logistics processes such as transport, storage and handling. That is why the research carried out in the framework of "EkoRDF-an innovative manufacturing technology of alternative fuel from municipal waste for power and heating plants-a key component of the Polish waste management system" financed by Polish Centre for Research and Development (GEKON Programme) aimed at determining the MSW potential not only in terms of use in power generation, but mainly from the point of view of technologies of converting the waste into granulated fuels for power generation units. The test material comprised oversize and undersize fractions of municipal solid waste obtained from four sources (sorting plants). The morphological and grain-size analyses were carried out, and the parameters important from the point of view of power generation were determined (moisture content, calorific value, volatile matter content, ash content). The impact of those parameters on key stages of RDF production from waste (drying, comminution and granulation) were analysed. The analysis led to determination of acceptable raw material parameters for use in production of fuel granulates dedicated to burning in power generation units.