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U.S. Department of Energy Energy Efficiency and Renewable Energy

Benefits of Combined Heat and Power

Combined heat and power (CHP) positively impacts the health of local economies and supports national policy goals in a number of ways. Specifically, CHP can:

  • Enhance our energy security by reducing our national energy requirements and help businesses weather energy price volatility and supply disruptions

  • Advance our climate change and environmental goals by reducing emissions of CO2 and other pollutants

  • Improve business competitiveness by increasing energy efficiency and managing costs

  • Increase resiliency of our energy infrastructure by limiting congestion and offsetting transmission losses

    In 2006, the U.S. emitted 5,890 million metric tons (MMT) of carbon dioxide. This number is projected to rise to 6,851 MMT of carbon dioxide in 2030. If CHP were to supply 20% of U.S. electricity generating capacity by 2030, the projected increases in carbon dioxide emissions would be cut by 60%.

    CHP can avoid 60% of the potential growth in carbon dioxide emissions between 2006 and 2030.

  • Diversify energy supply by enabling further integration of domestically produced and renewable fuels

  • Improve energy efficiency by capturing heat that is normally wasted.

Through continued research, development, and outreach, DOE and its partners could help to dramatically increase CHP's share of U.S. electricity generating capacity. Expanded use of CHP will help meet national energy, economic, and environmental goals. A recent study by Oak Ridge National Laboratory, Combined Heat and Power: Effective Energy Solutions for a Sustainable FuturePDF, has found that significant benefits would accrue by raising the CHP share to 20%.

If 20% of electricity generation capacity—about 240,900 megawatts (MW) per year—comes from CHP by 2030, the United States will see:

  • Reduced annual energy consumption — about 5,300 trillion British thermal units (Btu)/year
  • Total annual CO2 reduction — 848 million metric tons (MMT)
  • Total annual carbon reduction — 231 MMT
  • Acres of forest saved — 189 million acres
  • Number of cars taken off the road — 154 million
  • Leveraged additional private investments — $234 billion
  • New jobs created — 1 million

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