The use of cogeneration with district heating is not a common practice
in the UK. It has attracted neither significant support from the Gove
rnment or the private sector. In this paper, we describe an energy, en
vironment and economics assessment for a proposed cogeneration with di
strict-heating scheme for the city of Leicester. Several investment op
tions, which differ with respect to plant numbers and generating capac
ities, are considered. A robustness assessment was performed to compar
e the financial returns for various economic scenarios and demand cond
itions. The use of a centralised cogeneration plant is found to be the
financially most-attractive option if environmental costs are taken i
nto account.