Classic thermodynamics, assuming the Carnot machine as the upper comparison limit in energy conversion systems analysis, considers thermal equilibrium during heat transfer interactions. Such an assumption requires either infinitely slow cycles or infinitely large heat exchanger surfaces. More realistic Limits on the optimal operation of energy systems can be provided by finite-time thermodynamics, which takes into account the constraints represented by finite operation time and limited heat interaction area. This paper focuses on the search for the optimum heating performance of a heat engine-driven heat pump in which the waste engine heat is used for heating purposes. At first, only thermal irreversibilities are considered; then, in order to obtain a more realistic model, the so called ''internal'' heat leak irreversibilities are taken into account too. Finally, a comparison between the performances of the irreversible model and those of actual plants is carried out. Copyright (C) 1996 Elsevier Science Ltd