Cogeneration – Cogeneration or combined heat and power (CHP) is the use of a heat engineor power station to generate electricity and useful heat at the same time. Cogeneration is a thermodynamically efficient use of fuel. In separate production of electricity, some energy must be discarded as waste heat, but in cogeneration some of this thermal energy is put to use. All thermal power plants emit heat during electricity generation, which can be released into the natural environment through cooling towers, flue gas, or by other means. However, CHP uses heat that would be wasted in a conventional power plant, potentially reaching an efficiency of up to 80%.