Which of the following best describes the role of cogeneration in energy conservation and how the application of a tariff system can help reduce energy bills?

Question

Question

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RRB JE EE 22 Apr 2025 Shift 1 CBT 2 Official Paper

Cogeneration is only applicable in large industrial settings and has no impact on energy conservation, while tariff systems are solely used for revenue generation by utilities.
Cogeneration and tariff systems are unrelated concepts, and neither contributes to energy conservation or cost reduction.
Cogeneration increases energy consumption by producing excess electricity, and tariff systems are used to penalize high energy users without reducing bills.
Cogeneration reduces energy waste by simultaneously producing electricity and useful thermal energy, while a welldesigned tariff system incentivizes off-peak energy usage, lowering overall costs.

Answer 1

The correct answer is option 4.

Cogeneration

Cogeneration (also called Combined Heat and Power, CHP) is a highly efficient process that uses one fuel source (e.g., natural gas) to generate electricity and heat.
Cogeneration reduces energy waste by simultaneously producing electricity and useful thermal energy, while a well-designed tariff system incentivizes off-peak energy usage, lowering overall costs.
This results in higher overall efficiency (up to 80–90%) compared to just 30–50% in conventional separate generation.

Tariff system

A tariff system is a pricing structure for electricity use (e.g., flat rate, time-of-use, or demand-based).
Tariff systems that are well-designed (like time-of-use pricing) encourage energy consumption during off-peak hours, leading to lower energy bills and better load distribution.