This paper provides a solution for managing excess heat production in trigeneration and thus, increases the power plant yearly efficiency. An optimization model for combining biomass trigeneration energy system and pit thermal energy storage has been developed. Furthermore, double piping district heating and cooling network in the residential area without industry consumers was assumed, thus allowing simultaneous flow of the heating and cooling energy. As a consequence, the model is easy to adopt in different regions. Degree-hour method was used for calculation of hourly heating and cooling energy demand. The system covers all the yearly heating and cooling energy needs, while it is assumed that all the electricity can be transferred to the grid due to its renewable origin. The system was modeled in Matlab© on hourly basis and hybrid optimization model was used to maximize the net present value (NPV), which was the objective function of the optimization. Economic figures become favorable if the economy-of-scale of both power plant and pit thermal energy storage can be utilized. The results show that the pit thermal energy storage was an excellent option for storing energy and shaving peaks in energy demand. Finally, possible switch from feed-in tariffs to feed-in premiums was assessed and possible subsidy savings have been calculated. The savings are potentially large and can be used for supporting other renewable energy projects.