In this study we explore the effects of end-use energy efficiency measures on different district heat production systems with combined heat and power (CHP) plants for base load production and heat-only boilers for peak and medium load productions We model four minimum cost district heat production systems based on four environmental taxation scenarios plus a reference district heat system used in Ostersund Sweden We analyze the primary energy use and the cost of district heat production for each system We then analyze the primary energy implications of end-use energy efficiency measures applied to a case-study apartment building taking into account the reduced district heat demand reduced cogen-erated electricity and increased electricity use due to ventilation heat recovery We find that district heat production cost in optimally-designed production systems is not sensitive to environmental taxation The primary energy savings of end-use energy efficiency measures depend on the characteristics of the district heat production system and the type of end-use energy efficiency measures Energy efficiency measures that reduce more of peak load than base load production give higher primary energy savings because the primary energy efficiency is higher for CHP plants than for boilers This study shows the importance of analyzing both the demand and supply sides as well as their interaction in order to minimize the primary energy use of district heated buildings (C) 2010 Elsevier B V All rights reserved