By Constellation, from Constellation’s Energy4Business blog …
Cogeneration, also known as combined heat and power (CHP), merges the production of usable heat and electricity into a single process that can substantially reduce carbon emissions and energy costs.
It typically takes place at or near the point of consumption and uses heat that would normally be lost in the power-generation process.
Despite its numerous benefits, it’s still largely underutilized in the United States—a fact that has not escaped the Obama administration. According to energy.gov, an Executive Order is in place to reach 40 gigawatts (GW) of new CHP (a 50 percent increase) by 2020.