What is the function of air preheater? How does air preheating save fuel?

Air preheater:

Air preaheater is a heat exchanger which take heat from flue gases and increase the temperature of the air before entering into the combustion process.

As we know that, flue gases contains high temperature and that temperature can be used by air preheater and it will reduce the amount of heat addition in the combustion process and that leads to increase the efficiency of plant. When heat addition reduces for the same out put of power it means that less amount of fuel is required for the same out put of power as without using air preheater. The main purpose of air preheater is to increase the thermal efficiency.

By increasing the temperature of air it will reduce the amount of fuel reduce for the combustion.