Biofuel exchange opens

VILNIUS - The National Control Commission for Prices and Energy (NCC) has issued a license to Baltpool biofuel exchange, reports ELTA. The first biofuels trading sessions are to begin early this month. The biofuels exchange invites participants to trade between heating and electricity producers and suppliers of biofuels. All the participants, regardless of their size, will have equal rights to take part in the market, says the exchange.
Chief Executive Officer of BaltPool Laura Zalaite says that a centralized marketplace will be one of transparency based on the equality of the participants and its publicity.

The trade of one of the most popular biofuels - wood shingles - will be carried out on the biofuels exchange.
The trade will take place in eight regions of Lithuania: Vilnius, Kaunas and Utena, Panevezys, Siauliai, Panevezys, Rietavas and Klaipeda port. The exchange will not charge taxes on the transactions made before the end of 2012. Prices in the exchange will be shaped by supply and demand.
Lithuania’s Energy Minister Arvydas Sekmokas in September said he hopes that the exchange will help to ensure the competitiveness of heat production.

“It is necessary to create equal conditions for both biomass boilers and other heat producers to connect to the heat transmission network,” added the energy minister.
On Sept. 26, Sekmokas introduced to the government a draft law arranged by the Ministry of Energy which stipulates the separation of the heat production and supply. He says that the new draft law on the heating sector strives to increase the State’s influence in the heating sector and to enhance the State’s regulation of it.
Prime Minister Andrius Kubilius pointed out that the heating sector required systemic reform which would allow consumers to get the least costly heating services.

The draft law plans to create equal rights for the connection of biofuel boilers and other heat producers to the heat transmission networks. The goal is to establish fair competition in the heat production and to ensure the transition to biofuels.