Co-generation technologies and efficient DHC networks offer significant environmental and energy security benefits, and can serve as flexible tools to bridge electrical and thermal energy systems. Yet despite these advantages, and successful implementation in some countries, to date, global deployment has been limited. This publication examines some of the reasons behind the slow progress, including local energy market conditions failing to ensure energy prices that reflect generation costs, lack of long-term visibility of energy policy and poor strategic planning for heating and cooling infrastructure. The report uses three case studies where co-generation has been successfully deployed in industrial applications, and three case studies of efficient DHC systems to inform this analysis.