Thermodynamic and economic analyses of various types of gas turbine combined cycle power plants have been performed to establish criteria for optimization of power plants. The concept of efficiency, in terms of the difference in energy levels of electricity and heat, was introduced. The efficiency of power and heat generation by power plants with other purposes was estimated, and power generation costs were figured out for various types of combined heat and power plants(i.e., fired and unfired, condensing and non-condensing modes, single or double pressure HRSG).