Combined Heat and Power (CHP), also known as cogeneration, is the production of electricity and heat from a single fuel source. CHP systems increase energy security by producing energy at the point of use and improve energy efficiency. It might be a smart choice if you have an ongoing need for both electricity and thermal energy (hot water/steam).
How it works
The system can be powered by a variety of fuels including natural gas (the most common choice), biomass, biogas and waste heat. The lower fuel cost, together with the overall system efficiency, drive savings for both electricity and heat.
Advantages of CHP technology
- Serves as a backup system for critical electrical requirements
- Lower energy costs as transmission and distribution costs are avoided
- Enhanced energy resiliency
- Increased economic competitiveness