In the context of bioeconomy, climate change and sustainable use of resources, more and more attention is brought to use of bioresources, to replace fossil resources not only in the power sector, but also in the industry. Therefore, the question on boundaries and preconditions for sustainable use of bioresources becomes essential. The case of Latvia is taken as an example in this study, on base of which, preconditions for sustainable use of forest resources in power sector have been developed. Developed methodology and preconditions can be adapted according to other sectors and country cases.