Combined heat and power (
CHP
) is the simultaneous production of useful heat and power in an integrated process with common fuel or energy source. By integrating heat and power production, it is possible to use the energy source in a more efficient way and by that to reduce the environmental impact including
CO
2
emissions.
The basic process of a
CHP
plant can be a thermal energy process based on heat engines or a fuel cell process based on electrochemical energy conversion. The capacity can range from several hundreds of megawatts of fuel input to plants delivering electricity and heat through a district heating network of a whole city down to micro
CHP
plants on kilowatt level supplying a one‐family house. The operating load is determined by the heat demand. For systems using a district heating network as the heat load, introducing also other heat demanding processes can be a way to increase the full‐load operating time and the yearly production of electricity from biomass.
The balance between the output of power and the heat supply is an important parameter for the performance of the plant. This is described by the ratio between the electric power and the heat power (the so‐called α‐value).
Several barriers, related both to the market and regulations, exist for implementation of
CHP
and policies are necessary to be able to develop the potential in the world. The
CHP
is a cost effective and important solution for reduction of
CO
2
emissions.