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A process technology used to generate both heat and electricity for use in a large building, group of buildings, or for district heat schemes. CHP is a fuel-efficient energy technology that, unlike conventional forms of power generation, puts to use the heat generated during electricity production that is normally wasted. CHP can increase the overall efficiency of fuel use to more than 75%, compared with around 50% from conventional electricity generation. Furthermore, because it often supplies electricity locally, CHP can also avoid transmission and distribution losses. (Source: Defra)
Quick fact: Use of CHP in a building typically results in energy cost savings between 15% and 40% compared to imported electricity and onsite boilers. (Source: Combined Heat & Power Association)