Sweetening the Power Sector: Current Experience & Future Potential for Bagasse CHP around the World

Massive unrealised potential exists worldwide for generating useful heat and power from bagasse. If sugar processing facilities around the world were to install combined heat and power (CHP) capability based on state of the art technology the sector represents a power generating potential equivalent to about 10% of the EU's annual electricity consumption. Realizing that potential would offer plant operators economic benefit as well as provide wider economic opportunity and environmental benefits for the world's cane growing regions. Many regions can already attest to the many benefits arising from their bagasse CHP investments. A minimum, of 3.7GW bagasse CHP capacity is already installed worldwide, and more is being commissioned every day. Several key obstacles do however remain before the full promise of CHP can be realized in the sugar industry. Major challenges include gaining access to the electricity grid, negotiating fair tariffs for power fed to the grid, and securing bank financing for CHP projects. The sugar industry and the power industry will have to work together to overcome these barriers if they are to share the benefits that bagasse CHP offers.