We present scenarios for bioenergy use in EU-27 countries for 2020. The basis is the National Renewable Energy Action Plans (NREAPs) submitted consequent to the 2009 EU Renewables directive. We limit our perspective to consideration of biomass use for electricity and heat. We have a particular emphasis on the realistic prospects of Combined Heat and Power (CHP) and its possibilities for increased primary energy efficiency. Furthermore, we present an overview of current progress of new bioenergy plants in Germany, United Kingdom, Poland, Belgium and Netherlands, and analyze the incentives needed for successful realization of large-scale bioenergy power plant projects. In this regard, we find that many European companies have cancelled their large-scale bioenergy projects due to lack of profitability and introduction of new RES support schemes. Our calculations show that using CHP, 12% less biomass is required to produce the same amount of heat and electricity targeted in NREAPs.