Abstract: The present invention provides for a combined heat and power system including at least one engine, operatively coupled to a generator, having at least one first heat source adapted to provide a first thermal energy output at a first temperature range, and at least one second heat source adapted to provide a second thermal energy output at a second temperature range, at least one first heat exchanger, operatively coupled to said at least one engine, and adapted to selectively receive and transfer at least a portion of any one or all of said first thermal energy output and said at least one second thermal energy output; and a dynamically adaptive heat storage system.