One of the greater challenge for 21. century European Union countries are energy independence and use of new, clean carbon dioxide-neutral fuels which every country wants due to unstable prices of fossil fuel in the world economy and better protection of the environment. The Republic of Croatia, as a member of the European Union took upon itself the obligations of the European Commission directive (2009) which promotes the use of clean, replaceable energy sources. Via the directive, all members of the EU are committed to increase energy efficiency, save 20 % of energy,reach 20 % of all used energy to be replaceable and to reduce the emission of greenhouse gas by 20 %. The EU's plan requires building of new energy plants with strict demands for energy management, rationalization of investments and protection of the environment. By establishing a stimulative legislature for producing electric energy from renewable sources, cogeneration of the energy policy by the Republic of Croatia and development of domestic wood industry it is expected that the use of biomass in energy conversions will double. The graduate thesis is based on the analysis of technical and economical parameters which show a high level of efficiency within the cogeneration plant. In the first part of the thesis, the profitability and the possibility of building a cogeneration plant on the location of a wood factory in Viroviticko-podravska county is analyzed. Due to high quantity of forest remains and constant need for heat energy throughout the whole year (8000 working hours yearly), the location of factories of wooden elements is a potential preferred producer of electric energy. In the second part of thesis, technical parameters of the cogeneration process based on rated powers of electric and heat energy are being analysed.