How to leverage cogeneration for additional benefits – price arbitrage and flexibility
Cogeneration is the simultaneous production of electricity and useful heat from a single fuel source, most commonly natural gas. Its primary value lies in the system’s high overall efficiency, reaching 80–90%, which significantly reduces energy losses compared to the separate generation of electricity and heat. In industrial applications, however, cogeneration is no longer merely a generation technology. It is becoming part of an energy management system that can serve as a cost stabilizer, a market arbitrage tool, and a source of additional revenue streams.