The European Union (EU) is committed to reduce carbon emissions by 80-95% in 2050, when compared to 1990. To reach this ambitious objective, a shift in energy consumption to low carbon, locally produced energy, and Renewable Energy Sources (RES) is needed. The use of biomass to produce electricity, heat and fuels could significantly help towards this direction. More specifically, the generation of electricity supplemented by the production of thermal energy (Combined Heat and Power - CHP) is an efficient way το achieve EU’s targets. The produced thermal energy of the CHP plant could be used to supply District Heating Networks (DHN) of cities with cold climate. In the context of this master’s thesis, the application of biomass for CHP in Europe was studied. At the beginning was analyzed the policy framework for biomass and CHP in EU. Furthermore, an extensive analysis of the EU’s legal regime of biomass and cogeneration from it was executed. This analysis was further extended for the case of Greece. Moreover, the available technologies for biomass CHP were studied and the main advantages and disadvantages of biomass, as well as applications of CHP plants worldwide, were presented. Furthermore, a feasibility study concerning the installation of a CHP plant supplying with thermal energy the DHN of the city of Amynteon (Greece) was executed. Following a detailed energy study for the calculation of the installed electrical and thermal capacity of the specific plant, an extensive techno-economic analysis was performed, which proved that under certain conditions the relative investment could be profitable. Finally, an optimization study concerning the installation of a Thermal Energy Storage (TES) system in parallel with the CHP plant was also executed.