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.

  • If the energy saving and capital cost benefits of CHP are allocated to its electricity production, growth in CHP market share can slightly reduce the delivered costs of electricity to end consumers.  This is contrary to the common view that CHP and other decentralised energy solutions result in higher electricity costs to consumers.


CarbonEES® is able to assist organisations with the feasibility, selection and implementation of CHP options.