Centralized, electric-only power plants waste enormous amounts of energy

Diagram of Conventional electric generation

Conventional electric generation

About two-thirds of the fuel used by traditional power plants gets lost as waste heat. Still more energy subsequently disappears through transmission wires. By the time electricity reaches consumers, at best, about a quarter of the energy is left.

Creating power locally — as with combined heat and power and waste energy recovery — enables institutions to recycle waste heat and reduce the need for long-distance transmission and distribution.

Source: Recycled Energy Development