Modernization of Biomass Trading in Poland: A Reference Price

The biomass market in Poland is currently undergoing significant changes, opening up new opportunities to implement innovative solutions that have already proven successful in neighboring countries—Lithuania, Latvia, and Estonia. In this context, it is especially relevant to discuss the biomass exchange—a platform that ensures transparency, efficiency, and enables market participants to make data-driven decisions.

The forthcoming launch of the Baltpool exchange in Poland, along with the launch of a reference price, could become a pivotal market development. However, the establishment of this price depends not only on the platform’s operation but also on the active engagement of market participants. The publicly announced market price—already implemented in the Baltic countries—is determined through real trading transactions on the exchange and offers both a clear picture of the market situation and a basis for well-founded business decisions.

Thanks to the exchange, all transactions take place publicly via an auction system, and prices are determined by genuine market mechanisms—eliminating any room for speculation and fostering transparent business decisions. The Baltic countries are the only region in the world that applies a reference price system in the biomass market. This system creates an investment-friendly environment where suppliers, producers, and consumers can accurately forecast their costs and profitability, while investors can make informed decisions regarding long-term projects. For example, in Latvia the reference price is already integrated into state policy—subsidies are granted only when the biomass price reaches a specific threshold. This model not only promotes transparency but also curbs potential manipulation and corruption.

With the reference price in place, cartel agreements vanish, and all market participants—including biomass producers, foresters, power plants, state institutions, and end consumers—reap the benefits of increased efficiency. Foresters can better plan when it is economically advantageous to harvest more, while regulators can access precise data to make informed decisions on heating prices or subsidies.

All trading occurs on a digital platform that provides easy access to all necessary information—from up-to-date market data to detailed analytics of individual transactions. This system reduces bureaucracy, cuts down on working hours, and ultimately lowers costs.

The advantage of the Baltpool exchange lies not only in its digital tools but also in its reliable pricing, which instills confidence in all market participants. This model, already recognized in the Baltic countries, could serve as the foundation for Poland’s biomass market, ensuring more transparent trading and stronger market trust.

The Polish biomass sector has enormous potential to evolve into a transparent, modern, sustainable, and competitive energy system. Adapting to new EU standards is not merely a formality—it is an opportunity to implement digitized, innovative solutions that have already succeeded in the Baltic countries. By leveraging the experience of its neighbors, Poland can secure more transparent trading, reduce costs, and enhance its market competitiveness. Although these changes pose challenges, they also present Poland with the opportunity to become a leader in sustainable bioenergy in the region and a model for other European countries.

We are currently in negotiations with the largest players in this market, whose involvement is a critical step in ensuring transparent and efficient trading. As trading accelerates, a publicly announced reference price will naturally emerge on the platform—a development that, as evidenced by the Baltic experience, not only eliminates corruption risks but also provides clarity for all market participants.