Combined Heat and Power (CHP) or “cogeneration” is the simultaneous production of both heat and power (electricity) by specialist CHP equipment installed on a site.
It is typically powered by gas in most commercial environments, but alternative input sources include oil and biomass. CHP plants offer significantly reduced energy costs by producing electricity on site, with the heat being used in a range of ways including powering central heating systems in winter and for cooling in summer through the use of absorption chillers as well as providing hot water all year round. There are a number of Government schemes to further incentivise the use of CHP and these are touched on in the associated PDF.
