The threat of energy poverty in mountainous areas, due to the high thermal loads required in these areas and the dependence from the conventional forms of energy, is particularly intense.

Renewable Energy Sources (RES) and especially the utilization of forest biomass, which is found in abundance in mountainous areas and capable of heat production, can reduce the energy costs of the households in mountainous areas.

In this paper, after clarifying the meanings of biomass and renewable energy sources, a brief record of the methods of exploitation of the forest biomass and mainly the direct combustion for energy production (heat and electricity) is made. The construction of a forest biomass combustion unit for electricity and heat production in the town of Konitsa and its feasibility has been also examined.

In conclusion, under the current framework for supporting investments in RES, the development of such a unit is feasible. At the same time, the heat generated can cover a significant part of the heating needs of Konitsa with much lower costs compared with diesel oil use.