Combined Heat and Power (CHP) systems are installed, because of higher fuel efficiency and small incremental capital costs. Since Heat has both thermal and chilling effect, CHP actually can have triple production Power, heat and cold. The economics of CHP are driven principally by the fuel savings and the cost of displayed electricity.
CHP installations have been installed internationally in a multitude of industrial applications such as paper, chemical food processing and other smaller concerns. Applications are also installed in large Hotel Complexes, Hospitals and athletic centres. Co-generation can also be used for combined cycle systems in power plants.