CHP is the heart of an efficient, decentralised energy system. It's the most efficient way possible to burn fuel because so little energy is lost as waste heat. That's how CHP plants in Denmark can reach up to 95 per cent efficiency.
Because the heat needs to be captured and piped around the local district, CHP plants are usually sited in the towns and cities where the electricity and heat will be used. This makes it more efficient for electricity generation as well as heat; very little energy is lost in transmission. For more information visit http://www.greenpeace.org.uk/efficiencity