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Combined Heat and Power (CHP) increases the usage efficiency of fuels,
hence lowering the cost of power generation. Distributed generation on the other hand, reduces
energy loss while improving the quality of supply.
In unison, both these technologies ultimately result in lowering the
impact against the environment while prolonging the 'life' of our fossil fuels.
Power generation can be located where actual supply is needed, which minimises losses caused by
transporting electricity through conventional transmission systems. Moreover, the increased thermal
efficiency leads to lower cost of energy.
Utility service providers and governments can defer huge investments in constructing large power
plants and transmission systems, resulting in cheaper electricity prices for customers.
Improved reliability and a higher quality of power supply can be provided to customers. It also
provides more choices of energy solutions to choose from.
Usage of CHP and DG can potentially offer a reduction in demand charges by the utility service
provider due to better management of peak demand through the use of on-site generation techniques.
Indirectly contributes towards lowering environmental impacts, while conserving fossil fuels.
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