Edinburgh and Belfast are two of the cities where the financial prospects for district heating from combined heat and power (CHP) are being investigated by consortia combining industrial membership (substantially the same for both) with strong local interests; the object is to learn whether city CHP schemes can appeal to the private investor. The paper deals with the historical build-up of interest in CHP in both places, leading to the formation of consortia in response to a government invitation, and the award of grant-in-aid announced in January 1985. It then explains how the two studies have been planned and sets out their content: the key technical and commercial factors, and also the statutory and other more general considerations. The work is well under way, and the paper reports on progress, including field work to ascertain heat demand, the choice of fuels and sites for heat-only sources and for the combined plant, and the sequencing of implementation progressively across the city.