The excessive utilization of fossil fuels to satisfy growing power demand has generated ecological instability, prompting the search for renewable energy sources. In this case, excess biomass from diverse crops has been considered. Despite this, there are significant challenges with this type of electricity generation, which are mostly related to its small size and high transit costs. As a result, this study describes an optimization approach for strategic planning of the use of waste biomass pellets as fuel source for generating power. The suggested strategy takes into account all operations in the distribution chain, from residue harvesting through pellet burning in power plants. The placement and structure of the pelleting facilities in a geographical region, as well as the choosing of biomass and distribution methods, are all needed to take account in order to meet the demands of the power plants at the lowest possible cost and ecological effects.