A heating system comprising electrical generator means, means for connecting the electrical output of said generator to distribution power lines, engine means for driving said generator means, heat exchange means for delivering to a heat load heat generated by operation of said engine means and generator means, and control means for automatically controlling the operation of said engine means in response to the heat demand of said heat load so that said delivered heat matches the heat demand of said heat load and in a manner to vary the electrical output of said electrical generator means in the same sense as said heat generated by said engine means and said generator means, whereby substantially all of said generated heat and electrical output are usefully employed.