Electricity generation usually also produces heat, which normally remains unused in conventional power plants. Combined heat and power makes use of this heat. CHP systems thus have a far higher fuel utilisation factor when operating as CHP. They use a significantly higher share of the energy than conventional systems. Compared with installations that generate electricity and heat separately, savings of up to 20 % primary energy are possible.
With decreasing energy demand, pressures on the environment associated with energy provision and transformation will also decrease. For instance, greenhouse gas emissions can be reduced by increasing the share of CHP. Demand for fuel will also decrease. The use of CHP can thus contribute to an economy that is light on resources.