Chiller is derived from the Latin word Chill, meaning to cool. Various cycles are used to create refrigeration, the most important of which are the compression refrigeration cycle, the absorption refrigeration cycle, and the thermoelectric refrigeration cycle.

Thermoelectric power plants boil water to create steam, which then turns turbines to generate electricity. The heat needed to boil the water can come from burning fuel, nuclear reactions, or the sun. As the steam passes through a turbine, it must be cooled back to water before it can be used again to generate more electricity. Colder water cools the steam more effectively, increasing the efficiency of electrical energy generation.