Combined Heat and Power (CHP)

Combined heat and power (CHP) is a way of using the heat from power production for increased efficiency. Conventional energy generation can be very wasteful of heat, even in modern coal and gas fired power stations, where possibly only a third of the energy used to power the stations goes directly to energy production, the other two thirds is potentially lost. It is reported by the Combined Heat and Power Association that CHP plants can be as much as 80% efficient or more at their point of use compared to a coal-fired plant with an efficiency of around 38%.