Small-scale biofueled district heating and CHPs can make a substantial contribution to building a sustainable energy system based on renewable resources, as demon­strated in this study. In Sweden, a total of 21 TWh electricity can be added if the existing potential is tapped, which corresponds to 14 per cent more electricity in the grid, or an added installed capacity of 15 per cent. Electricity that is released from heating systems can be used more efficiently to provide other energy services. This is definitely a very significant development of the Swedish power system. Moreover 10 TWh oil and 5 TWh firewood are substituted by sustainable biomass. In countries with large heat demand and where district heating systems are not being as largely used, the contribution of such small-scale systems could be even greater.

Small-scale CHPs are interesting solutions in combination with other small-scale energy techniques. Throughout the year, solar energy and bioenergy complement each other in an ideal way due to seasonal variations of resource availability and energy needs. In local energy systems with small-scale hydro or wind power, bio­fueled CHPs can be a cornerstone.

The distributed power production has also the advantage to reduce the vulner­ability of the power system. In the case of failure of large centralized units or due to distribution disruptions, the local power can be used to keep vital functions in operation. This will reduce the need for other back-up systems. In the cases where fossil fuels are being used for heating, the utilization of biomass-based systems will imply significant reduction of greenhouse gases. Finally, the establishment and operation of small-scale district heating and CHP units can help promote regional development, contributing to job generation for systems operations, for example, along the whole biofuel production chain, and related activities.