The paper presents a concept of producing energy on the basis of modern alternative fuels to be burnt in low- and medium-power stokerfired boilers. The thermal energy contained in water vapour and hot water will be utilized in producing, in combination, of electrical energy, and for heating of cubature objects. Modern alternative fuels in the form of briquettes and pellets will be produced from hard coals and municipal waste other than hazardous. There have been presented the properties of alternative fuels obtained, and the concept of their utilization in the process of energy production in cogeneration.