Combined Heat and Power (CHP) is also known as Cogeneration or total energy.
CHP is the production of usable heat and power in a single process at the point of consumption. It differs from traditional methods of power generation in that the heat generated in the production of electricity is captured and used for a variety of purposes such as industrial processes, district/community heating or space heating.
With the addition of an absorption chiller, a CHP system is able to provide cooling - thus making it a tri-generation system.
CHP is a much more efficient way to produce heat and power than traditional methods. In a conventional power generation system, fuel is burned to drive generators which make power and up to 65% of the potential energy contained in the fuel is lost through heat exhaust transmission and distribution losses’, meaning the system only operates at about 35% efficiency.
A CHP system captures the heat and reduces the transmission and distribution losses, and so operates at a much higher rate of efficiency - typically greater than 80%.
A well-designed and operated CHP system will always provide significantly improved energy efficiency than conventional methods, which means the user makes both energy and costs savings.
As CHP systems are located at the point of consumption, there is very little loss of energy through transmission and distribution - again creating a more efficient system.
An added benefit of having on-site power production is that it offers a source of high-quality secure power that operates independently of the grid. In many instances, any excess electricity generated by a CHP unit can be exported and sold back to the grid, thus shortening the capital cost payback period.
Because CHP systems are so efficient, they also provide environmental benefits such as significantly reduced CO2 emissions.
In the past, CHP systems have typically used natural gas as a fuel source, but as the technology has matured significantly in recent years, systems are now coming to market which can use biomass, biogas and other renewable fuel sources.
Many governments around the world have recognized the benefits that CHP can provide and are supporting the promotion of this highly efficient and environmentally responsible technology.