Technology Overview

Industrial Combined Heat and Power (CHP) is a technology that simultaneously produces electricity and useful heat from the same fuel source. Instead of generating electricity and releasing excess heat into the environment as in conventional power plants, CHP systems utilize this waste heat for industrial applications such as drying, heating, or steam production.

Technical Characteristics

This technology is typically deployed in industrial zones or facilities with high thermal demand, enhancing the overall energy efficiency of the system. The input can consist of various types of fuels, while the outputs include both electricity and heat for industrial use.

The net electrical efficiency of CHP systems is approximately 18–27%, making CHP one of the most energy-efficient technologies when considering total energy utilization. However, actual performance depends on the degree of alignment between electricity and heat demand within the system.

Investment cost data indicate that current capital costs are approximately 2.2–3.11 million USD/MW. Although the initial investment cost is relatively high, CHP can deliver significant economic and environmental benefits by reducing fuel consumption and emissions. In the context of the energy transition, CHP plays a role in optimizing energy efficiency rather than fully replacing other power generation sources.

Application in Vietnam

In Vietnam, industrial CHP is considered suitable for facilities with large and continuous heat demand, due to its ability to simultaneously produce electricity and heat. The deployment of this technology depends on the alignment between electricity and thermal demand across different industrial sectors.