The paper presents economic analysis of combined heat pump and power plant. The analysis proves the cost-effectiveness of the combined heat pump and power technology which determines short payback period and low heat price. The plant can produce heat for large town by heat pump technology. Low heat price provides possibility to subsidize electricity realization in case it is higher the market price. According prospective electricity market and natural gas prices the presented plant technology ensures competitive electricity cost and able to provide heat at much lower price compare with present.