Cogeneration (also combined heat and power, CHP) is the use of a heat engine or a power station to simultaneously generate both electricity and useful heat.

All thermal power plants emit a certain amount of heat during electricity generation. This can be released into the natural environment through cooling towers, flue gas, or by other means. By contrast, CHP captures some or all of the by-product heat for heating purposes, either very close to the plant, or—especially in Scandinavia and eastern Europe—as hot water for district heating with temperatures ranging from approximately 80 to 130 °C. This is also called Combined Heat and Power District Heating or CHPDH. Small CHP plants are an example of decentralized energy.

Cogeneration was practiced in some of the earliest installations of electrical generation. Before central stations distributed power, industries generating their own power used exhaust steam for process heating. Large office and apartment buildings, hotels and stores commonly generated their own power and used waste steam for building heat. Because of the economies and high cost of early purchased power, these combined heat and power operations continued for many years after utility electricity became available. Cogeneration is still common in pulp and paper mills, refineries and chemical plants.