This paper presents an analysis of the feasibility of implementing biomass power plants, through thermoelectric power generation, and adding such plants to the electric system of the local electric utility by means of independent power production. Economic, regulatory, and market issues are also addressed. The biomass being considered is produced by the lumber sector, since that is one of the industrial sectors generating the largest amount of residues in a concentrated manner in the region under study, and also considering the fact that the disposal of such residues is currently difficult for the lumber companies. The locations with the largest production of residues, as well as the size of potential plants, are identified, the generation costs of the plants calculated, and the feasibility for implementing the plants is evaluated considering the market and the regulation of the Brazilian electric power sector. (C) 2010 Elsevier Ltd. All rights reserved.