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A gas heat pump (GHP) air-conditioner is a gas air-conditioning system in which an outdoor compressor is driven by a gas engine to operate a heat pump to provide air-conditioning. As the advantages of energy saving, low electric power consumption and running costs have been recognized, the use of GHP units has been increasing every year. As of the end of the FY2004, the installed capacity of GHP units in the Osaka Gas service area amounted to 3.10 million kW (an increase of approximately 110% over the previous fiscal year). We have recently developed the GHP with power-generating function (High Power Multi). Equipped with a small generator with 1-kW class output, High Power Multi has the feature of lower electric power consumption and running costs, compared to GHP without a power-generating function (conventional GHP). We launched the sale of High Power Multi with the variation of the type from 35.5kW to 56kW type in October, 2003. All GHP manufacturers are going to commercialize High Power Multi in the FY2005, a variation is due to be expanded to 35.5kW – 84kW type. Furthermore, we are also tackling development of GHP with a power-generating function that enlarges power generation capacity of High Power Multi, and supplies generated power out of an outdoor unit by the grid connection. This system is under development aiming at commercialization of the spring of 2006. In this paper, we show the overview and spread of High Power Multi. Then we introduce the development of GHP with power-generating function (GRID CONNECTION TYPE). Finally a future prospect is described.