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In this paper a novel time varying acceleration coefficients particle swarm optimization (TVAC-PSO) algorithm is implemented to solve combined heat and power economic dispatch (CHPED) problem. The CHPED problem is a challenging non-convex and non-linear optimization problem. The acceleration coefficients in PSO algorithm are varied adaptively during iterations to improve solution quality of original PSO and avoid premature convergence. The effect of valve-point in cost function considered with adding an absolute sinusoidal term to conventional polynomial cost function. The proposed method is applied to five test cases with different characteristics. Also, a new large scale test case considering valve-points effects is proposed in this paper. The obtained results demonstrate the superiority of the proposed method in solving non-convex and constrained CHPED problem.