Combined heat and power (CHP) represents a series of proven, reliable and cost-effective technologies that are already making an important contribution to meeting global heat and electricity demand.  Due to enhanced energy supply efficiency and utilisation of waste heat and low-carbon renewable energy resources, CHP, particularly together with district heating and cooling (DHC), is an important part of national and regional GHG emissions reductions strategies.

 From a global study conducted by the International Energy Agency (IEA), it has been found that CHP offers merits of moving towards a lower-carbon, more efficient, lower-cost and reliable energy future.  Some of these merits include:

 CHP can reduce CO2 emissions arising from new generation in 2015 by more than 4% (170 Mt / year), while in 2030 this saving increases to more than 10% (950 Mt / year) – equivalent to one and a half times India’s total annual emissions of CO2 from power generation.  CHP can therefore make a meaningful contribution towards the achievement of emissions stabilisation necessary to avoid major climate disruption. Importantly, the near-term reductions from CHP can be realised starting today offering important opportunities for low- and zero-cost GHG emissions reductions.

• Through reduced need for transmission and distribution network investment, and displacement of higher-cost generation plants, increased use of CHP can reduce power sector investments by USD795 billion over the next 20 years, around 7% of total projected power sector investment over the period 2005 - 2030.