This paper presents a method for the optimal location and sizing of biomass fuelled gas turbine power plants. Both profitability in using biomass and power loss are considered in the cost function. The first step is to assess the plant size that maximizes the profitability of the project. The second step is to determine the optimal location of the gas turbines in the electric system to minimize the power loss of the system. (c) 2005 Elsevier Ltd. All rights reserved.