According to Baltic researchers, a large proportion of the existing biomass boilers in Lithuania is expected to be decommissioned. In Estonia and Latvia, existing biomass boilers are expected to remain in operation in 2030. In all scenarios, the district heating sector dominates in these two countries in 2030. The results show that heat pumps provide a competitive source of heat generation for district heating companies lacking capacity, whereas it is difficult for heat pumps to compete with the short-term costs of generating biomass-based heat.