Local CHP in Denmark is many things, for example gas engine plants based on natural gas or biogas, waste incineration plants, industrial plants, etc.

The PSO-based research and development programmes administered by Energinet.dk have supported and will continue to support the development of environmental improvements and environmentally friendly power generation technologies at local CHP plants to the benefit of the Danish electricity consumers.

With the liberalisation of the electricity market, the majority of the local CHP plants have begun operating on market terms, and today they play a major role in stabilising and regulating the power system. They are also expected to play a key role in a future power system based on renewables.