Combined Heat & Power

Distributed generation systems producing only electric power will have an electric efficiency in the range of 20 - 45%. Adding heat recovery, which increases the useful energy (by utilizing the heat and power generated); results in much higher total fuel utilization and efficiencies can range from 50 - 90%.

The figure below illustrates the increase in fuel-use efficiency by using CHP to eliminate a boiler. The overall energy consumption required to produce equal amounts of electric and thermal energy is reduced from 129 units to 100 units in this example, to generate 85 units of useful energy.