“ 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 and improves the quality of supply. In unison, both these technologies ultimately result in lowering the impact against the environment while extending the 'life' of our fossil fuels. ”
As the power generation can be located where actual supply is needed, it eventually minimises the potential loss caused by transporting electricity through conventional transmission systems. Ultimately, increased thermal efficiency leads to lower cost of energy.
Significant Cost Savings
Utility service providers and governments can defer huge investments in constructing large power plants and transmission systems, resulting in relatively inexpensive electricity prices for customers.
Enhanced Reliability & Quality
Improved reliability and quality of power supply provides more choices of energy solutions for consumers.
The 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.