Using gas engines, CHP can save up to 30% on primary energy costs when compared to the separate purchase of electricity from the electricity grid and gas for use in on-site boilers.
Combined Heat and Power plants achieve efficiencies of 90% due to the high energy utilisation of the fuel input. Further power efficiencies are achieved because the cogenerated electricity and heat is produced and consumed on-site, avoiding the transmission losses of around 7.5% that occur in transporting electricity from remote generators to consumers.