In the distributed heat and power system

customers need to optimally select the generator composition and the dispatch plan that can reduce the introducing cost and carbon-dioxide emissions. So in the programming stage

they should also consider the heat and power load in the area and the candidate of generator

while considering the operation situation. A subtle mathematical programming model with the target of minimizing the system cost is proposed

with an overview of the initial investment of combined heat and power generator and its combined benefits when in the simulative operation mode. In the planning model

there exist a lot of integer variables and the fact that the model itself is nonlinear. The generalized Benders decomposition method is used for its solution. The results of an example program and simulation analysis show that the proposed method can more accurately calculate the type and number of combined heat and power generators

and the system can yield better economic benefits.