Comparison between cogeneration and separate production of heat and electricity

Conventional power plant usually convert one third of fuel use to utilize power and the rest of fuel loss as heat to the atmosphere. Even the most advanced technologies do convert more than 55% of fuel into useful energy. Cogeneration known as Combined Heat and Power, or CHP, is the production of electricity and heat in one single process for dual output streams. Cogeneration uses both electricity and heat and therefore can achieve an efficiency of up to 90%, giving energy savings between 15-40% when compared with the separate production of electricity from conventional power stations and of heat from boilers. It is the most efficient way to use fuel. CHP also helps save energy costs, improves energy security of supply. The paper considers two examples to explain difference between separate production of heat and electricity and cogeneration.