The rapid economic growth in the Baltic States requires significant alterations in their energy sectors. This paper describes current status and specific features of the energy systems in the Baltic States, and in particular discusses the role of the renewable energy sources in the primary energy supply and energy transformation sector of these countries. The structure of the energy sectors inherited from the Former Soviet Union and constructed through several decades was inappropriate in terms of size of these countries and their access to primary energy. Based on common principles changes in the primary energy supply during the period 1990-2003 in each country are analysed. This paper presents analysis of the main driving forces for future usage of bio-energy, such as sound general energy policy in the Baltic States, favourable legislative framework, implementation of the EU Directives and corresponding National Programs. The paper focuses on comparison of existing potential for energy production from feasible renewable energy sources, trends of bio-energy production and the role of renewable energy sources for the future energy needs in the Baltic States. Due to existence of some limiting factors additional energy policy measures encouraging future development of bio-energy production in the region are necessary. (c) 2005 Elsevier Ltd. All rights reserved.