Cogeneration (Combined Heat and Power or CHP) is the simultaneous production of electricity and heat, both of which are used. The central and most fundamental principle of cogeneration is that, in order to maximise the many benefits that arise from it, systems should be based according to the heat demand of the application. Through the utilisation of the heat, the efficiency of cogeneration plant can reach 90% or more.

11% of Europe’s electricity and associated heat requirements today are produced using this proven energy efficiency principle. The estimated growth potential for cogeneration is a further 110-120 GWe which will lead to an improved environment and greater economic competitiveness in Europe. Cogeneration units can be found in different sizes and applications: industry, households and tertiary sector and spans applications with capacities ranging from below 1kw to hundreds of Megawatts. It is a highly efficient energy solution that delivers energy savings and substantial reductions in CO2 emissions. When seriously supported by Member States, realising the potential of cogeneration in Europe will contribute significantly to reaching the strategic climate and energy goals, such as security of supply, energy efficiency and reduction of emissions.

Introduction to CODE2

The CODE2 project is co-funded by the European Commission (Intelligent Europe Europe – IEE) and will launch and structure an important market consultation for developing 27 National Cogeneration Roadmaps and one European Cogeneration Roadmap. These roadmaps will be built on the experience of the previous CODE project ( and in close interaction with the policy-makers, industry and civil society through research and workshops.

The project aims to provide a better understanding of key markets, policy interactions around cogeneration and acceleration of cogeneration penetration into industry. By adding a bio-energy CHP and micro-CHP analysis to the Member State projections for cogeneration to 2020, the project consortium will propose a concrete route to realising Europe’s cogeneration potential.

Project objectives

CODE2 has the following objectives:

  • Better understanding of key markets, policy interactions around CHP and acceleration of CHP penetration into industry
  • Add a bio-energy CHP and micro-CHP analysis to the Member State projections for CHP to 2020
  • Propose a concrete route to realising Europe’s CHP energy efficiency potential

Project target groups

CODE2 aims to reach the following stakeholders:

  • EU and national policymakers and decision-makers, including wider influencer groups
  • Potential and existing users of cogeneration, including all capacities of cogeneration. The main focus throughout the project will be to reach sectors such as paper, food, hospitals, and SMEs
  • Local and regional energy agencies in Europe that support the introduction of good energy management practices
  • Cogeneration equipment manufacturers and suppliers who seek to grow and strengthen the industry and its supply chain

Time schedule and activities

The project started on 1 July 2012 and will finish 31 December 2014. During the period the actions will lead to the following outcomes:

  • Development of 27 individualised National Cogeneration Roadmaps
  • Development of a European Cogeneration Roadmap
  • Identification for the first time of the potentials for micro-CHP and bio-energy CHP
  • Production of practical guides for target industries (paper, food/drink, hospitals, commercial premises) that address the main issues when developing a business case for cogeneration
  • Selection of best practice cases from all over Europe
  • Organisation of 7 workshops in pilot Member States
  • Development of Coalitions on Cogeneration at national level
  • Organisation of high-profile events in Brussels to inform EU policy-makers