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Foreword For a long time, Nordic Energy Research and the Baltic countries have worked closely to develop a thriving exchange of knowledge that adds value to the Nordic-Baltic region. We share many of the same energy challenges on our path toward achieving carbon-neutrality in our respective countries.

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Therefore, it is in our common interest to cooperate and create opportunities together. An important area of common ground is district heating and cooling.

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District heating and cooling networks are widespread in most Nordic and Baltic countries. The coupling of the common Nordic-Baltic electricity market to local district heating via power-to-heat, offers large comparative advantages with respect to flexibility of source, potential synergies, and economic considerations.

It also facilitates the deployment of renewable energy, decarbonization of the electricity and heat sectors, as well as ensures a cost-effective energy supply.

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This report illustrates the considerable potential and benefits of using heat pumps and electric boilers, which are promising options for curbing climate-warming emissions and developing the heating- and cooling markets in the Baltic countries. I hope that this report sheds light on the possibilities associated with heat pumps and highlights their significance for the green transition in the Nordic-Baltic region. With growing interest, research must advance to reach our ambitious climate and energy goals by During the last couple of years, Baltic researchers have been involved in several other projects that Nordic Energy Research has initiated and funded, among which are the comprehensive reports Baltic Energy Technology Scenarios and Transport Statistical Data and Projections in The Baltic States After these successful collaborations, we are once again pleased to publish a report carried out with Baltic management.

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