Biomass is a renewable, economic and readily available resource of energy that has potential to substitute fossil fuels in many applications such as heat, electricity and biofuels. The increased use of the agricultural biomass can help the a gricultural based societies in achieving energy security and creating em ployment without causing environmental degradation. However, the viability and feasibility of electricity generation from agricultural biomass depends upon the availability of biomass supply at a competitive cost. The present study investigates the availability of agricultural biomass for distributed power generation in Greece (Kozani). The study concludes with a discussion on significan ce and challenges of decentralized electricity generation for rural ene rgy supply, including brief description about economical, social, environmental and technical aspects of bioelectricity. With the application of the life cycle analysis applied, the environmental and economic impacts that will occur in the region of Kozani in Greece, where a biomass wood pellets production workshop is operating, have been assessed. The total annual emission of CO 657.9 gr, HC 22.36 gr, PM 67.94 and NOx 8.832,2 gr was calculated. The econo mic evaluation estimated the payback period for the investment in thi s plant to be approximately 3 years.
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