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Purpose

The objective of this study is to highlight the questions arising in the design of district heating and cooling systems (DHCSs) in a distributed generation context and to present a model to help find cost‐effective solutions.

Design/methodology/approach

Literature on energy systems optimisation is reviewed and a mixed integer programming model for decentralized DHCSs design is developed and applied to two real case studies.

Findings

Distributed cooling generation partly coupled with distributed cogeneration and DH is the preferred solution in the examined areas. The optimal configurations, with special reference to network sizing and layout, significantly depend on heating demand profiles and energy prices.

Research limitations/implications

Interdependencies between energy units sizing and network layout definition should be considered. Obtaining more robust and reliable network configurations should be the objective of future modelling efforts.

Practical implications

Despite the growth of distributed energy conversion, designers often rely on centralized concepts in order to reap economies of scale. The presented model helps in discovering less usual solutions representing the most profitable option.

Originality/value

Combining and comparing central and distributed production of heat and cooling under consideration of network costs.

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