Through the preparatory project, the objective of the main project is to develop and build prototype of cost efficient micro combined heat and power system (CHP) for single family houses. The main project is expected to address the challenge of ensuring a reliable, sustainable and affordable energy solutions for the remote and sparsely populated communities in the NPA area having harsh climatic conditions. Project is expected to make possible the efficient use of renewable bioenergy, such as wood chips, wood pellets, straw chips, peat and others, in single family homes making a cost efficient micro combined heat and power system.