While the core component of a decentralised energy system is distributed generation, the system can be further combined with various energy storage and demand response solutions. While heat cannot be transported over long distances, distributed generation that is located closer to the consumers can allow for coordination between heat and electricity generation through combined heat and power plants (CHPs). Since heat is often a by-product of electricity generation, the use of CHP increases the system’s efficiency and can thus reduce the environmental impact by limiting greenhouse gas emissions.