Cogeneration – a sustainable energy solution with many benefits
Cogeneration or Combined Heat and Power (CHP) is a sustainable energy solution that provides numerous benefits to a variety of stakeholders, including increased energy efficiency, lower emissions, attractive economic returns, and increased power system resiliency. The technology is a low carbon intensity and high-efficiency solution for the simultaneous generation of electricity and thermal energy. It is a proven, cost-effective, and readily available technology. (Cogen Europe, 2010). The adoption of cogeneration systems for industries that have combined demand for heat and power is envisaged to improve energy efficiency and security of power supply while reducing emissions/pollution, in addition to many other benefits as described in the following sections.
Conventional system – separate generation of heat and power
In the traditional or conventional system of power generation, industrial plants which require both electrical power and thermal energy will import electricity from the power grid and generate heat on-site using boilers. This arrangement is suboptimal because there are considerable energy losses associated with the power grid, and the combined generation efficiency of imported power and self-generated heat is considerably less than that of a cogeneration plant.