Combined Heat & Power Basics
Cogeneration through combined heat and power (CHP) is the simultaneous production of electricity with the recovery and utilization of the heat generated during this process. Cogeneration is a highly efficient form of energy conversion and it can achieve primary energy savings of approximately 40% by compared to the separate purchase of electricity from the conventional electricity grid and a gas boiler for onsite heating.
Combined heat and power plants are typically built close to the end user and therefore help reduce transportation and distribution losses. For power users where security of supply is an important factor for their selection of a power source most installations operate using the grid as a back-up. If gas is abundant, gas-based cogeneration systems are ideally suited as power plants.