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In this paper a Decision Support System (DSS) algorithm based on a multi-criteria analysis which allows us to determine the most suitable biomass energy basins for smart grid development is proposed. The energy management and planning DSS algorithm is based on dedicated GIS functionalities which have allowed an easier mathematical management of spatial data and an integration of the database with other external datasets. In order to evaluate the influence of local condition on planning process, all geo-referenced information about the biomass distribution, electric network and electric loads distribution, road, orography and other social, economic and environmental information have been used. The algorithm has been applied to determine the biomass energy basins on an Italian region: Sardinia. The economic analysis of energetic basins, determined by proposed DDS algorithm, have confirmed the goodness of the methodology adopted.