In this dissertation, an assessment is conducted of the potential benefits of combined heat and power (CHP) based district energy (DE) grids in energy systems of different scale having significant fossil fuel fired electrical generation capacity. Three studies are included in the research.

In the first study, the potential benefits of expanding CHP-based DE grids in a large scale energy system are investigated. The impacts of expanding wind power systems are also investigated and a comparison between these technologies is made with respect to fossil fuel utilization and CO₂ emissions. A model is constructed and five scenarios are evaluated with the EnergyPLAN software taking the province of Ontario, Canada as the case study. Results show that reductions in fuel utilization and CO₂ emissions of up to 8.5% and 32%, respectively, are possible when switching to an energy system comprising widespread CHP-based DE grids.

In the second study, a high temporal resolution numerical model (i.e. the SS-VTD model) is developed that is capable of rapidly calculating distribution losses in small scale variable flow DE grids with low error and computational intensity. The SS-VTD model is validated by comparing simulated temperature data with measured temperature data from an existing network. The Saanich DE grid, located near Victoria, Canada, is used as the case study for validation.

In the third study, the potential benefits of integrating high penetrations of renewable energy via a power-to-heat plant in a small scale CHP-based DE grid are investigated. The impacts of switching to a CHP-based DE grid equipped with an electric boiler plant versus a conventional wave power system are compared with respect to fossil fuel utilization and CO₂ emissions. The SS-VTD model is used to conduct the study. The energy system of the Hot Springs Cove community, located on the west coast of Vancouver Island, Canada is used as the case study in the analysis. Results show that relative to the conventional wave power system, reductions in fuel utilization and CO₂ emissions of up to 47% are possible when switching to a CHP-based DE grid.