This report details a methodology for performing a cost-benefit analysis (CBA) identifying the most resource and cost-efficient solutions to meet heating and cooling demands for a given country or region in accordance with Article 14(3) and taking in account Part 1 of Annex IX of the of the Energy Efficiency Directive (EED) (EC, 2012). The methodology includes guidelines how to: (1) collect data about energy consumption and supply points needed to construct heat maps, (2) how to identify system boundaries, (3) assess the technical potential that can be satisfied by efficient technical solutions, including high efficiency cogeneration, micro-cogeneration and efficient district-heating and cooling. (4) define baseline and alternative scenarios, including quantifying the cost and benefits of both scenarios. This comprises for example the economic value of other effects is estimated, mainly, the changes in socio-economic and environmental factors. Cost-Benefit Analyses integrate all costs and benefits over a long period are integrated in a unique estimate, the Net Present Value, which provides information about the net change of welfare derived from the implementation of the different heating and cooling scenarios. In the end, the cost-benefit analyses shall provide information about which are the most cost-efficient solutions to meet the heating and cooling needs of a country or a region.