CHP, or Combined Heat and Power, is typically a form of onsite DG that recovers waste heat from the electricity generation process to improve efficiency. Efficiency is improved by utilizing the waste heat for thermal applications offsetting the fuel consumption that would otherwise be needed. Most CHP systems will generate electricity from sources like natural gas, and will use the waste heat from the combustion process as heating for water, HVAC, and industrial processes. Combined with a special type of chiller, known as an absorption chiller, CHP units can also function as CCHP or Combined Cooling, Heat, and Power. CHP and CCHP systems are typically much more efficient (85% efficiency) than the local electric grid, since there are no electrical transmission losses and because waste heat is captured and used instead of being discarded into the environment.