A combined heat and power plant is an energy generation facility that supplies one or more buildings with both heat and electricity. The burning of a fuel drives a generator in the CHP unit to produce electricity. The resulting heat is discharged into a storage tank. The principle of CHP units is based on combined heat and power and is often used within district heating networks. Depending on the fuel used, the process is very environmentally friendly and is subsidized by the federal and state governments as well as the utilities. In addition to fossil fuels, renewable energy sources can also be used. The electricity generated can either be consumed directly or fed into the public power grid. Because electricity and heat are generated from a single fuel input, the energy efficiency of a building connected to a CHP unit is usually significantly improved. CHP units can play a major role in the decarbonization of a building and also lead to cost savings for the operators due to the increase in efficiency. Biogas-fueled CHP units also reduce CO2 emissions, making them an important component in sustainable, off-grid building operation.
