This study evaluated the potential of a microalga Diplosphaera sp. MM1 for its ability to generate energy through biomass production from wastewater remediation. 33% dairy wastewater and 50% winery wastewater demonstrated as promising alternative media for cultivating Diplosphaera sp. MM1 biomass. Interestingly, the alga cultivated in 50% winery wastewater with limited nitrogen produced the highest lipid content (43.07% total solid) and the lowest carbohydrate content (9.35% TS). On the contrary, the lowest lipid content (16.98% TS) and the highest carbohydrate content (29.39% TS) were exhibited by the alga cultivated in 33% dairy wastewater. The results from anaerobic digestion processes in terms of biochemical methane potential of the alga cultivated in BG-11 medium, 33% dairy wastewater and 50% winery wastewater were 197.39, 129.75 and 218.51NmLg(-1)VS, respectively. Further, this study demonstrates the potential of winery wastewater as a candidate to increase the lipid content of algae and enhance biofuel production of algal biomass.