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The report uses three case studies where co-generation has been successfully deployed in industrial applications, and three case studies of efficient district heating and cooling (DHC) systems to inform this analysis. These real-life examples demonstrate that long-term stability of energy efficiency rewarding policy strategy is one of the most important levers to unlock cost-effective deployment potential of these technologies. They also show that technical challenges posed by innovative and highly integrated DHC systems can be solved through cooperative effort, experience sharing and support to demonstrate pioneer networks. Based on this analysis, the report provides policy recommendations intended to help policymakers better understand the drivers of deployment of co-generation and DHC systems, and overcome policy and market barriers to increased cost-effective penetration of these efficient energy options.

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