To improve both the efficiency and economy of the district heating network the system based on supply of low temperature water to new and existing buildings and locally raising thermal parameters of such water to required parameters is a modern and vital option. Paper presents a comparison between a traditional DH system with boilers and electricity purchases from power utilities and a low temperature DH system incorporating the CHP with ORC, meaning that heat and electricity are produced within the system. The “island” system may feature or not the heat pump. Comparisons are made based on the results obtained using a simple analytical model for the efficiency of respective systems. The objective of the heat pump in the system is to increase temperature of hot water to the required level locally at the dwelling and provide the heating in such way, contrary to the traditional system, where water heating is considered by use of electric heaters to increase parameters of water for central heating purposes and preparation of utility hot water. A low temperature district heating (DH) system enables easier utilization of renewable energy as a heat source and improves the efficiency of heat distribution. The most advantageous configuration improving the real efficiency of the ultra-low temperature heating system (ULTDH) seems to be a system combining a central heat pump and a station based on modern ORC technology which also provides an independent (off grid) electricity supply. In the paper is exhibited the most favourable future CHP comprising ORC and heat pump that for both analysed systems, namely the new and traditional ones covers the same heat demand to the users as the system based on CHP with ORC only. The system with ORC and heat pumps is more effective and uses less primary energy, which in this in turn results in smaller carbon dioxide emissions.