A district cooling and heating (DCH) system can provide both cooling and heating for blocks of buildings in cold climate areas, however, different thermal source schemes of a DCH project always differ in their first cost, operating cost, maintenance cost, regulation performance, control performance, energy-saving and environment protection performance, etc. In order to evaluate various DCH thermal source schemes quantitatively, the paper firstly establishes an evaluation model based on value engineering theory. It then elaborates on how this model is applied in the first seawater source heat pump DCH project in China-Dalian Xinghai Bay project. The calculation results show that even though the scheme of seawater source heat pump system is not economical under commercial electricity price mainly because of its relatively high initial cost, yet it has the highest value coefficient under civil electricity price. This also implies that privileges of policy for renewable energy utilization system are necessary to help promote the energy-saving and environment-friendly scheme of seawater source heat pump system. (C) 2010 Elsevier Ltd. All rights reserved.