The proposed project aims to promote an investment in clean energy and energy efficiency in order to ensure the contribution to the objectives of the Europe 2020 strategy. The general objective is to increase the installed heat and electricity generation power from less exploited renewable resources, i.e. biomass, in the city of Singeorz-Bai, thus contributing to the achievement of the result indicator and the target provided in LIOP, 2S53. Gross production of primary energy from renewable sources less used in the proposed project is 0.2753 Miitep/year, thus increasing the share of renewable energy in total primary energy consumption. The calculation was based on the energy conversion formula, 1 MWh = 0.086 toe. The investment results in a new production capacity in cogeneration, which is achieved by modernising the existing heat production and distribution system (4 individual heat plants, 2 commune power stations, the thermal network for Artemiu Publiu Alexi General School, Solomon Halita High School and the gym and indoor networks in all buildings) and adding the electricity production component, thus contributing to the specific objectives of LIOP and Priority Axis 6. Following the project in the city will move from the individual production of thermal energy at building level, to the production in one unit from which it is transported and distributed to all buildings (one user – the city of Singeorz-Bai, with several buildings). Following the implementation of the project, the following results will be obtained: 1. A unit for the production of heat and electricity in cogeneration from biomass, with installed capacity of 2 MW 2. a transmission and distribution network of energy produced by the centralised unit, with a total length of 1.080 m Project indicators are: CO34 – greenhouse gas reduction: the estimated annual decrease of greenhouse gases is 730.37 tonnes CO2 CO30 – the additional renewable energy production capacity is 2 MW (1,760 MW thermal + 0.240 MW electric). The new production capacity provided in the project will contribute 0.2753 Miitep/year to the national target established by the NAPEER in terms of gross production of primary energy from less exploited renewable sources, i.e. biomass (programme indicator 2S53).