Cogeneration is a very efficient technology to generate electricity and heat. It is also called Combined Heat and Power (CHP) as cogeneration produces heat and electricity simultaneously. Cogeneration supplies currently 11% of electricity and 15% of heat in Europe. Using a fuel to simultaneously generate heat and electricity with a single unit is more efficient and cost-effective than generating heat and electricity separately in two different units. The technology offers the following benefits for both its users and our society:
- Increased energy efficiency. Cogeneration is up to 40% more efficient than the separate generation of heat and power.
- Lower emissions. Cogeneration saves every year 200 milion tonnes of CO2 in Europe thanks to being very efficient. This equals the total emissions of 42.5 million passenger cars or 2.6 million trucks.
- Reduced energy costs. Users of cogeneration benefit from higher efficiencies and therefore need less fuel to cover their heating and electricity demand.
- Supporting renewable energy. Cogeneration can run on any renewable fuel and is the most cost-effective way of using renewable fuels. Currently, 27% of fuels used in cogeneration in Europe are renewable, mainly biomass and biogas.
- Empowered businesses and citizens. Cogeneration comes in all sizes, from 1kW to nearly 1GW. It is fit to supply heat and electricity to all types of users, from a single household to a large industrial complex or entire town.
- Enhanced energy system resilience. Cogeneration can generate the exact amount of electricity and heat needed at a certain time in a certain place. This brings flexibility and resilience to an energy system which has to cope with a growing number of intermittent renewables such as solar and wind power.
- Reduced transmission and distribution costs. Cogeneration generates electricity and heat at the spot. Users of cogeneration rely less on electricity from the grid avoiding grid costs both at end-user and system level.
- Reduced import dependency. High efficiency leads to reduced fuel demand in Europe.
- More jobs for Europe. The cogeneration sector employs 100,000 people in Europe and this number is expected to grow as the European Union is investing in energy efficiency and renewables to reduce emissions.