The present invention provides for a combined heat and power
system, comprising: at least one engine, operatively coupled to a generator, having at least one first heat source adapted to provide a first
thermal energy output at a first temperature range, and at least one second heat source adapted to provide a second
thermal energy output at a second temperature range; at least one first
heat exchanger, operatively coupled to said at least one engine, and adapted to selectively receive and transfer at least a portion of any one or all of said first
thermal energy output and said at least one second thermal energy output; and a dynamically adaptive heat storage
system. The dynamically adaptive heat storage
system further comprises: a selectively variable first thermal energy store, adapted to accept, store and
discharge thermal energy at said first temperature range; at least one selectively variable second thermal energy store, adapted to accept, store and
discharge thermal energy at said second temperature range; at least one first
heat pump, operatively coupled to said first thermal energy store and said at least one second thermal energy store, and which is adapted to transfer and thermally
upgrade the thermal energy stored in said at least one second thermal energy store to said first thermal energy store, and a
system controller, adapted to selectively engage any one or all of said at least one first heat source and said at least one second heat source and control the amount of thermal energy that is stored, upgraded or discharged, so as to optimise the energy efficiency of said combined heat and power system.