Cogenerationor combined heat and power (CHP) is an efficient and cleanerway of generating electric power and thermal energy from a single fuel source. The engine drives the generator, producing electricity, and the residual heat created during this process is recaptured and turned into useful heat (heating, cooling or steam). Cogeneration has a proven track record of achieving RM1.4 million savings per year based on 1 Mega Watt of electricity generated.