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Combined Heat and Power (CHP) or Cogeneration is the production of
electricity and thermal energy in a single, integrated system.
In Malaysia, electricity is usually generated at a central power plant, while on-site heating
and cooling equipment is used to meet non-electric energy requirements. This process of electricity
generation, involves the release of hot gases into the atmosphere. The heat (thermal energy) that
is commonly dissipated using cooling towers, represents an energy loss, which lowers the overall
efficiency of the plant.
Thermal energy recovered in a CHP system can be used for heating or cooling in industrial
environments or buildings. Unlike traditional separate generation techniques used in the production
of electricity, CHP captures the heat that would normally be dissipated and lost.
By using CHP, the thermal energy in the exhaust is extracted and used for heating or steam
generation through the heat recovery steam generator (HRSG) and cooling through the use of absorption
chillers.
It is particularly useful for installations that incur high heating or cooling loads, such as
factories, hotels, hospitals and commercial buildings.
CHP has high thermal efficiency ratios as compared to conventional thermal generation techniques.
Efficiencies of up to 90 percent are possible unlike conventional thermal generation (40%) and
combined cycle generation plants (60%).
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