Need for co-generation in present scenario: 1. In conventional power plant efficiency is only 35% & remaining 65% of energy is lost. 2. The conventional system uses energy of fuel to produce Electrical energy or Thermal energy. Where as co-generation system produces both electrical energy & thermal energy from same flues. 3. The overall efficiency of energy use in co-generation can be up to 85% and above. 4. Lower volumes of CO2 emissions compared to the conventional system where separate production of electricity & heat. 5. In co-generation system, heat generated is by-product in electricity generating process. This heat can be used for other processes. Due to this energy cost are lowered. 6. Limited need of cooling water in co-generation system therefore reduces thermal pollution.
OR
Need for co-generation in present scenario: 1. Reduces energy demand. 2. Reduces rise in energy cost. 3. Provides economical solution to energy shortages. 4. Increases financial capital. 5. Increases environmental value.