Abstract:The market development of gas driven CCHP system depends on the following factors:social demand,supplying condition of electricity and gas and technique economics.The quick increase of common buildings in Shanghai offers a wide market for the CCHP.The electricity supply in Shanghai will probably go short in next years.However,the natural gas supply will be plentiful with the national project "transmitting gas from the west to the east" putting into operation.It offers a wide market for gas driven CCHP.The economic analysis shows that it is of benefit to use a CCHP with the selection of a reasonable power unit under the condition of the current energy cost.All of these indicates that the gas driven CCHP has a great developing space with the policies supporting from local government.