What is combined heat and power (CHP)?
Combined heat and power is an efficient, alternative energy system that produces both electricity and heat from a single fuel source. The fuel source that provides the initial power to the system can be anything from natural gas to biofuel. CHP systems are strategically placed at or near customer facilities in order to avoid the transmission and distribution loses caused by energy purchased from centralized locations.
Benefits of CHP:
- Diversifies energy supply, rather than relying on foreign oil
- Prevents rolling blackouts
- Protection from power outages
- Allows local energy to be utilitzed (natural gas, biomass, wind, etc.)
- Reduces carbon emissions by eliminating use of fossil fuels
- Pays for itself in just a few years of energy savings
- Improves business competitiveness by decreasing energy costs
- Captures excess heat energy, which is usually just wasted
- Generates energy on-site, thereby minimizing energy losses in transmission
- Is a proven and dependable technology, advocated by the US Department of Energy
- Guarantees continuity in energy supplies