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Abstract

This paper deals with the issue of whether then are benefits in establishing an electric power production plant (EPPP) using biomass as fuel in a certain geographical area (prefecture of Kavala/ Greece) taking into account nine certain factors that strongly influence and determine the final decision about the capacity/size and viability/feasibility of the EPPP unit proposed. Using the M. Falia Model we concluded that a certain capacity’s EPPP can be established in prefecture of Kavala being viable and profitable. The nine factors used in the model are: 1. The extent of area capable to produce the biomass required for the EPPP operation; 2. The quantity of biomass required; 3. The plant mix of biomass; 4. The quality of biomass defined international standards; 5. The net thermal value 6. The ex-factory total unit cost of biomass used as «fuel»; 7. The environmental benefits quantified by us; 8. The total investment cost for the EPPP; 9. The real discount rate or International Rate of Return (IRR). The model uses the EPPP capacity as dependent variable and the nine factors as independent ones, resulted in an optimal solution about the feasibility of establishing an EPPP unit in the certain area of Kavala prefecture.