As intermittent renewable energy sources generate a growing share of U.S. electricity, electric utilities and other system operators face an increasing need for additional generation capacity to keep the electric grid stable and secure. One potential solution to the challenge is combined heat and power (CHP) systems that seamlessly connect to the grid and have the capability to provide needed grid services. Many small and mid-sized U.S. manufacturing plants would be ideal locations for such flexible CHP systems. This fact sheet explains the flexible CHP system concept and its potential benefits to the grid and host sites.