A typical Austrian family estate, the Jaidhof estate owns some more than 10.000 m2 non renovated historic monument protected buildings. The estate also owns agricultural land forestry and water. The owner plans to renovate all the buildings and wants to find the least cost renewable energy solution for heat and warm water production for the estate. The idea is to investigate the own resources and to achieve a local solution based on own resources. The solution will be a combination between a 1 MW district heating unit and 3 stand alone solutions based on own produced wood chips. The thesis invests the market possibilities of the Jaidhof estate to deliver wood as a fuel to produce heat and calculates the opportunity costs for the estate at market prices (2006) The thesis works out the business plan including financial plan and technical plan for the execution. The thesis analyses the technical and financial problems in planning and execution and describes the steps made to improve. The thesis results in the statement that a district heating system based on own locally produced biomass is a cost and security of supply with fuel optimal solution but the. Profitability depends very much from the hydraulic and other technical execution.