Micro-CHP is a flexible and controllable player in the new smart grid low carbon electricity market offering services to the grid and the opportunity to bring a whole new group of citizens into a new relationship with the energy market. The timing of the EED with its inclusive review of the CHP Directive is ideal to ensure through an appropriate policy structure that micro-CHP emerges successfully from its early market stage, playing its part in the success of Europe‟s Climate and energy strategy and empowering Europe‟s citizens.