1.2 The Benefits of Cogeneration
Provided the cogeneration is optimized in the way described above (i.e. sized according to the
heat demand), the following benefits can be obtained:
ß Increased efficiency of energy conversion and use
ß Lower emissions to the environment, in particular of CO2, the main greenhouse gas
ß In some cases, biomass fuels and some waste materials such as refinery gases, process or
agricultural waste (either anaerobically digested or gasified), are used. These substances
which serve as fuels for cogeneration schemes, increases the cost-effectiveness and
reduces the need for waste disposal
ß Large cost savings, providing additional competitiveness for industrial and commercial
users while offering affordable heat for domestic users also
ß An opportunity to move towards more decentralized forms of electricity generation,
where plants are designed to meet the needs of local consumers, providing high
efficiency, avoiding transmission losses and increasing flexibility in system use. This
will particularly be the case if natural gas is the energy carrier
ß An opportunity to increase the diversity of generation plant, and provide competition in
generation. Cogeneration provides one of the most important vehicles for promoting
liberalization in energy markets.