Combined Heating and Power (CHP) is a highly efficient technology that simultaneously generates electricity and thermal energy from a single fuel source. On average, CHP systems are about 85% efficient compared to traditional central power plants which are about 35%-50% efficient. There are several factors that allow CHP systems to operate at such high efficiencies because they capture the excess heat created during the generation of electricity and use that heat to produce steam or hot water for manufacturing processes, space heating, absorption cooling, or domestic hot water.
Because CHP is more efficient, less fuel is required to produce a given energy output than with traditional power plants. This higher efficiency offers substantial benefits including: lower operating costs, reduced emissions of all pollutants, increased reliability and power quality and reduced grid congestion and avoided distribution losses.
It’s like having your own miniature power plant in your facility, except it’s very efficient!