Also known as CHP (Combined Heat & Power), Cogeneration refers to the utilization of electricity and heat as created in an engine/power station. This technology capitalizes on the fact that all electrical generating plants generate a certain amount of power. Typically, conventional power plants do not effectively make use of the excess heat attaining only 55% efficiency. However, CHP systems gain higher efficiencies (up to 89%) by being implemented on-site thus allowing the heat byproduct to be utilized.