Combined Heat and Power (CHP) is a system that generates electricity but also captures waste heat produced in the creation of the power

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Benefits

Generates both hot water & power
Export opportunities for power generated
Can be over 85% efficient
Suitable for large commercial applications where both
heat and power are required
Renewable technology, eligible for Government payment scheme Renewable Heat Incentive (RHI)

Drawbacks

Heating and electricity demand must remain fairly consistent
Heating demand must be continuous to ensure both heat and power generation
High capital cost
Large plant space required