What is meant by co-generation in energy production?

Co-generation refers to the simultaneous production of electricity and useful thermal energy from a single energy source or process. This approach maximizes the efficiency of fuel use, as it allows for the recovery and utilization of heat that would otherwise be wasted in the electricity generation process. By capturing this heat for applications such as heating buildings, industrial processes, or hot water supply, co-generation systems achieve higher overall energy conversion efficiencies compared to separate generation of electricity and heat.

In contrast, the other options describe different methods or concepts in energy production. For instance, using solar panels pertains to renewable energy generation but does not involve simultaneous heat recovery, thus not capturing the essence of co-generation. Production of energy with no waste presents an ideal scenario that may not be achievable in practical systems, as all energy conversions incur some loss. Lastly, while using wind energy could theoretically produce heat and electricity, it does not capture the idea of co-generation, which involves optimizing output from a single source to harness both thermal and electrical energy at the same time.