From September 1st. tonne of oil equivalent (TOE) to megawatt hours (MWh)

2020 08 25
From September 1st. tonne of oil equivalent (TOE) to megawatt hours (MWh)

Starting on 1 September, trade at the Baltpool biomass exchange will be implemented using megawatt hours (MWh) instead of tonnes of oil equivalent (TOE). It is a small, yet important change.

This change will help market participants to trade at the exchange and compare prices on other markets with more ease. More favourable conditions for trade and competition as well as Baltpool operations abroad (including expansion in Sweden) will be provided.

According to Andrius Smaliukas, head of Baltpool, energy resources such as gas and electricity are traded in the main European markets in megawatt hours (MWh). Biomass was some sort of exception in Lithuania.

“This change will enable market participants to trade more conveniently with neighbouring countries where trade in biomass is already measured in energy units. Furthermore, this change will enable all parties concerned to compare prices of different types of energy and individual constituents of these prices with more ease and act accordingly,” said Mr. Smaliukas.

For the convenience of market participants, Baltpool has already started publishing biomass prices using both tonnes of oil equivalent and megawatt hours.