This research aimed to develop a cost model in acquiring various agricultural residues as fuels for biomass power plants and to investigate cost differentiation when sources of biomass materials were changed or combined to produce electricity. Database of agricultural residues including location, availability and price throughout Thailand was accumulated based on top seven highest availability sources. Cost model was developed to compare cost when different types of agricultural residues were utilized to generate either electricity or heat. Cluster analysis was applied in the demand side analysis by clustering biomass power plants which were located within 50 km radius from the same centroid. Transportation cost was estimated from the biomass source to the corresponding demand centroid. The cost model for transporting agricultural residues to the demand location was then proposed. From the cost model of transporting agricultural residues, a biomass power plant was chosen as examples. It was shown that when the biomass power plant replaced eucalyptus barks with corncobs, the production cost could be reduced by more than 60%. From the analysis, it was also revealed that the most important factors that a biomass power plant should consider were energy content and cost of the raw material, as well as availability of the nearest supply source.
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