Assessing the development potential of very small cogeneration units with electric output up to 10 kW (also called “micro-cogeneration”), which are currently almost absent in the Czech Republic. Target markets for their implementation are above all households and small institutions and businesses. Secondly, using the outcomes from the first (analytical) phase, to identify appropriate measures for elimination of administrative and other non-economic barriers, which are currently hindering installation and operation of micro-cogeneration units due to the existing regulatory framework. Finally, the third target with equal importance is to draw up appropriate economic schemes to support the development of micro-cogenerations units in the Czech Republic, with minimum demands on state budget.