Combined Heat and Power Production: Socio-economic and Sustainable Development Aspects

The paper is based on the study of Lithuania facing the need for huge investments in both the replacement of the Ignalina nuclear power station and the replacement of district heating production units in many of the existing systems. Lithuania has a big technical potential for implementing small‐scale combined heat and power production (CHP) systems. Meanwhile, such implementation needs public regulation to become feasible not only from a socio‐economic, but also from a business economic point of view. The study focuses upon the analysis of methods for the incorporation of technical, economical and environmental considerations into large‐scale investment decision‐making in the energy sector. The research study could be a guideline for determination of national potential for high efficiency CHP not only from the technical, but both the economical and the environmental point of view. Based upon the results of the study investigation and analysis, areas for improvement in current energy sector investment decision-making processes are highlighted, and areas for further research are recommended.