Original: CHP or a bottoming cycle captures the by-product heat for domestic or industrial 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 decentralized energy.
Simplified: Combined heat and power captures the byproduct heat for domestic or industrial heating purposes, either very close to the plant, or - especially in Scandinavia and eastern Europe - for distribution through pipes to heat local housing.