Optimization and GIS-based combined approach for the determination of the most cost-effective investments in biomass sector

Use of biomass for energy purposes has many advantages, but it is not always profitable due to the characteristics of biomass. In order to improve the utilization of biomass it is necessary to create optimal conditions which require employment of several methods and technologies. This paper describes developed approach for consideration of options for the optimal utilization of available biomass potential under the current conditions (technological, economic, environmental and social). The developed approach is focused on support for decision making process on community level. Proposed approach includes mapping of biomass potential with defining both potential primary storage locations and potential locations of plant using geographic information system technologies. Also, it includes determining the optimal amount of biomass that can be justifiably used for energy purposes under current conditions by using the mathematical optimization with objective function related to maximizing net present value quotient. Four groups of technologies that can be used for biomass valorisation have been considered in the paper; biofuels production, thermal power plants, district heating and cogeneration.The proposed approach has been applied (as a case study) on Municipality of Ivanjica located in South-West region of Serbia. Municipality of Ivanjica is characterized by both significant forest area and significant forest biomass potential. There are 30 potential primary storages locations and 57 potential plants locations determined by geographic information system. However, only one of potential locations of plant and two of potential primary storage locations (6% of available potential) are determined by mathematical optimization as optimal and could be used under current conditions.