CHP
plants make the maximum use of
fuel energy by producing both electricity and heat with
minimum wastage. The plants achieve a total efficiency of 80 to 90
%. In conventional condensing power plants the efficiencies remain
at around 40 %. This efficiency is 30-40% higher than separate
production of heat and electricity.

Primary energy consumption in CHP generation as compared with corresponding generation in separate processes is lowered by approximately one third