The reports - one on the UK's potential for CHP, and a second on the progress of CHP in the UK, are published as part of the European Commission's Cogeneration Directive.
They predict that over 10% of the UK's electricity will come from CHP generation by the end of 2010.
They go on to state that 17% of our total energy requirements could come from CHP.
CHP generates heat and power in a single process, which could greatly reduce levels of carbon dioxide emissions compared to the separate generation of heat and power, from both on-site boilers and fossil fuel power stations.
CHP can be adapted to a variety of fuels and technologies, and could play a crucial role in the UK's low carbon future.
in 2005 there were 1,502 CHP units in the UK. Projections for the UK suggest that by the end of 2010, 36 TWh of the 350 TWh of electricity supply that will be needed will come from Combined CHP.