Combined heat and power (CHP or cogeneration) is the simultaneous production of electricity and thermal energy from a single fuel source. Most CHP systems in New York City use natural-gas fired turbines or reciprocating engines to generate electricity and then capture heat from the combustion generator’s exhaust stream and cooling systems.

CHP has numerous benefits. It is on the order of twice as efficient as conventional fossil fuel power plants, and thus uses much less fuel and generates much less air pollution. It contributes to grid reliability and, by allowing buildings to produce some of their own electricity, it displaces some of the need for costly, polluting power generation during times of peak power use. CHP can also provide electricity and thermal energy to critical infrastructure during disasters.