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Combined heat and power (CHP), also known as cogeneration, is an efficient process that captures waste heat from electricity generation and uses it for heating or cooling purposes. This integrated approach significantly improves overall energy efficiency compared to separate generation of heat and power. In a typical CHP system, fuel such as natural gas, biomass, or waste heat is burned to produce electricity. The residual heat that would otherwise be lost to the atmosphere is then captured and utilized for applications like space heating, water heating, or industrial processes.

The benefits of CHP are substantial. Firstly, it leads to considerable energy savings and reduced fuel consumption, as less primary energy is needed to produce both heat and electricity. This, in turn, results in lower greenhouse gas emissions and a smaller environmental footprint. Secondly, CHP systems can enhance the reliability of energy supply, particularly when integrated with local heating networks. They are often deployed in industrial facilities, large buildings, district heating systems, and even in small-scale residential applications. The efficiency of CHP systems is typically measured by their "total efficiency," which accounts for both the electrical and thermal energy produced.