Combined Heat and Power (CHP) – Cogeneration

Combined heat and power (CHP) is the simultaneous cogeneration of electricity and heat. Cogeneration is a highly efficient form of energy conversion and using gas engines it can achieve primary energy savings of approximately 40% compared to the separate purchase of electricity from the electricity grid and gas for use in a boiler. If the fuel for the gas engine is renewable such as biogas, hydrogen, syngas or biomethane, CHP can be a highly sustainable source of electricity and heat. Combined heat and power plants are typically embedded close to the end user and therefore help reduce transportation and distribution losses, improving the overall performance of the electricity transmission and distribution network. District energy schemes use combined heat and power plants to generate both electricity and heat for a group of residential or commercial buildings. For power users where security of supply is an important factor for their selection of power production equipment and gas is abundant, gas-based cogeneration systems are ideally suited as captive power plants (i.e. power plants located at site of use). Being a localised source of power generation, it can help improve a site’s resilience in the event of a power grid failure with the addition of island mode operation features.