Assessing the development of combined heat and power generation in the EU

Purpose – This paper aims to quantify the potentials for the development of combined heat and power (CHP) in Europe. Design/methodology/approach – To this end, it uses the TIMES-EU energy-economic model and assesses the impact of key policy options and targets in the area of CO 2 emissions reduction, renewable energies and energy efficiency improvements. The results are also compared with the cogeneration potentials as reported by the Member States in their national reports. Findings – The paper shows that CHP output could be more than doubled and that important CHP penetration potential exists in expanding the European district heating systems. This result is even more pronounced with the far-reaching CO 2 emissions reduction necessary in order to meet a long-term 2 degree target. Nevertheless, the paper also shows that strong CO 2 emission reductions in the energy sector might limit the CHP potential due to increased competition for biomass with the transport sector. Originality/value – Given the proven socio-economic benefits of using CHP, the paper identifies the areas for future research in order to better exploit the potential of this technology such as the combination of CHP and district cooling or country- and industry-specific options to generate process heat.