Since co-generation can meet both power and heat needs, it has advantages in the form of significant cost savings for the plant and reduction in emissions of pollutants. Major benefits of co-generation can be listed as below:

• Provides economic competitive advantages through a maximized return on investment by utilizing the same fuel to provide heat and electricity;
• Environment friendly because of reduced air emissions of Green House Gases, sulfur dioxide, nitrogen oxides, and particulate matters;
• A reliable source of power and process steam or heat;
• Onsite electricity generation can reduce transmission and distribution losses; and
• Low gestation period.