Producing electricity and heat simultaneously from a single fuel: efficiency up to 90%.
Cogeneration, or CHP (Combined Heat and Power), is a process that simultaneously produces electricity and useful heat from a single fuel, typically natural gas. Compared to separate production, cogeneration achieves overall efficiencies of 80-90%.
How it works
A gas engine or turbine produces electricity; the waste heat is recovered and used for heating, industrial processes, or steam production. Trigeneration plants also produce cooling through an absorption chiller.
CHP vs separate production
| Parameter | Cogeneration (CHP) | Separate production |
|---|---|---|
| Overall efficiency | 80-90% | 50-55% |
| CO2 emissions | Reduced by 20-30% | Baseline |
| Energy cost | 15-25% lower | Baseline |
| Available incentives | TEE, gas tax relief | None specific |
When it makes sense
Cogeneration is economically advantageous when there is a simultaneous and constant demand for electricity and heat. Ideal sectors include: food processing, chemicals, paper, hospitals, shopping centers, swimming pools, and district heating.
Available incentives
High-Efficiency Cogeneration (CAR) enjoys numerous benefits: access to White Certificates, natural gas tax relief, dispatching priority, and simplified authorization. CAR recognition is issued by GSE based on efficiency parameters achieved by the plant.
Informational content by IPGS Energy. Information is reviewed as of the stated update date and does not replace a contractual, tax or regulatory assessment specific to an individual business.