Biomass and heat trade statistics July of 2022

2022 08 08

As the heating season approaches, we will be publishing statistics and information on the preparation for the heating season in these monthly trade statistics reviews.

PREPARATION FOR HEATING SEASON

Compared to the average demand for biomass during the heating season in 2019-2021 (3.7 million MWh), currently 26% of the required amount of biomass (0.96 million MWh) has been agreed for winter. Evaluating the years 2019-2021 and the amount of biomass prepared up to and including the second week of August, preparations for the winter season were stronger – in the considered period, an average 32% of the required amount or 1.2 million MWh have been agreed upon.
The weighted price for winter 2022 (43,81 Eur/MWh) is 88% higher compared to last season (23,27 Eur/MWh). Looking at the price differences at the county level, the biggest price difference can be seen in Curonian Spit (185%) and Klaipėda County (139%). The lowest price difference is in Tauragė (79%) and Marijampolė counties (56%).

Delivery statistics in Lithuanian counties for winter 2022

Buyer county	Finalized contract price, Eur/MWh	Finalized contract amount, MWh	Price difference compared to previous heating season
Alytus county	50,34	24 500	102%
Kaunas county	49,33	183 230	97%
Klaipėda county	54,00	71 200	139%
Curonian Spit	55,00	5 040	185%
Marijampolė county	47,00	840	56%
Panevėžys county	44,03	112 770	104%
Šiauliai county	36,09	313 530	82%
Tauragė county	45,11	12 250	79%
Telšiai county	51,95	53 760	121%
Utena county	44,88	31 360	123%
Vilnius county	43,47	149 380	89%
Total	43,81	957 860	88%

Preparation of Lithuanian counties for the upcoming winter season

The bubbles shown on the map correspond to the amount of biomass purchased in the counties, and the numbers next to the bubbles are the ratio of the currently purchased amount of biomass to the specific county’s need for biomass, based on last year’s data during the heating season

BIOMASS AUCTION STATISTICS

The value of the BWCS (Baltpool Wood Chips SPOT) LT index reached 38.38 Eur/MWh. Compared to the value of May, the growth of the index has been fixed by 31%, and compared to the results of the same period last year, the value of the index is higher by 179%.
The total amount of biomass delivered, compared to June, increased by about 42% to 431,970 MWh. The preparation for the upcoming heating season is visible – 83% of the total volume is long-term contracts, the delivery of which is expected during the heating season. Compared to the corresponding period last year, the amount of biomass delivered is 58% higher.
The average price of short-term transactions concluded in Estonia was 27.00 Eur/MWh.
The average price of short-term transactions concluded in Latvia was 43.67 Eur/MWh.

WOOD CHIPS PRODUCT STATISTICS

One-week contract prices

Contract prices and turnovers

	Lithuania, Eur/MWh	Latvia, Eur/MWh	Estonia, Eur/MWh	Turnover, MWh
Short-term (W+M)	36,42	41,63	27,00	301 680
Future prices according to current long-term transactions (Q+H):
Q03-2022	29,00	–	–	11 550
Q04-2022	42,94	38,00	–	549 010
Q01-2023	43,10	–	–	299 390

WOOD PELLET PRICE STATISTICS IN LITHUANIA

One-week contract prices

Contract prices and turnovers in Lithuania

	Lowest price, Eur/MWh	Highest price, Eur/MWh	Weighted average price, Eur/MWh	Turnover, MWh
Short-term (W+M)	53.00	95.00	85.46	2 080

OTHER PRODUCT PRICE STATISTICS

One-week contract pricesContract prices and turnovers in Lithuania (all supply periods)

	Lowest price, Eur/MWh	Highest price, Eur/MWh	Weighted average price, Eur/MWh	Turnover, MWh
Peat for fuel	23,00	23,00	23,00	–
Biomass and lignin mixture	15,00	22.50	18.33	630

HEAT AUCTION STATISTICS

In July 2022, an auction was held for the purchase of heat quantities for the month of August 2022.
The weighted average heat purchase price was 2.44 ct/kWh and was 14% lower than the heat supplied for the month of July (2.83 ct/kWh). Compared to the same period last year, the price is 105% higher (1.19 ct/kWh).
For the month of August, the amount of heat purchased amounted to 172 839 MWh – this is 1% more than the amount of heat purchased for the month of July, and compared to the results of the same period last year, the amount of heat purchased decreased by 2%.
Sellers offered to sell 352 508 MWh of heat at the auction – this is 9% less compared to July’s heat supply. Compared to 2021 the amount of heat offered for sale at auctions for the month of August decreased by 10%.