The paper presents the methodology and the case studies for condition of the Czech Republic of BICOM - Blomass Competitiveness Model. The model consists of the following modules: (1) the identification of a biomass potential in a given area using GIS modelling (based on climate and soil conditions), (2) modelling the biomass price (using the methodology of the minimum price from the producer's point of view and evaluating the opportunity cost of conventional agriculture production), (3) modelling the biomass processing and logistics, (4) modelling economic competitiveness of the biomass and coal utilization. Typical price range (without VAT) is 6.9-9.8 EUR/GJ for pellets produced from residual biomass and 7.6-12.4 EUR/GJ for pellets produced from energy crops based on our calculations. Typical price range of coal suitable for local heating is 4.8-5.5 EUR/GJ (without VAT). To reach competitiveness of locally produced solid biofuels introduction would be needed of combination of measures aimed at reduction of minimum price of produced pellets (e.g. subsidies for pelleting technology, improved yields and lower losses) and some measures aimed at restrictions imposed on brown coal (e.g. increase of ecological tax). Saved carbon is calculated for replacement of brown coal by pellets from local biomass, which could be used as argument and benchmark for subsidies targeted on the solid biofuels production from local biomass. (C) 2017 Elsevier Ltd. All rights reserved.