New technologies for biomass gasification are being developed which increase the potential to cogenerate electricity and may reduce costs compared with steam turbine technology. Cogeneration is a more energy-efficient way to convert biomass into heat and electricity than separate electricity and heat production. The potential to cogenerate electricity in the Swedish district-heating systems is estimated to be 20% of current electricity production when using combined cycle technology. The electricity and heat costs from cogeneration with biomass are higher than the costs from fossil fuel plants at current fuel prices when external costs are excluded.