Indian firm proposes power generation from bagasse to revive struggling sugar industry
Shirish Karandikar, chairman and managing director of Mukherji and Associates Limited (right), and Pon Moses, the company's director of projects, show part of a model machine in a sugar mill in Kisumu on November 28, 2024.
An Indian consultancy firm is lobbying the government and sugar millers to embrace the generation of electricity from bagasse to diversify revenue streams and alleviate financial woes in the sugar industry.
The firm said this will contribute to the country's growing power demands, noting that despite 18 registered sugar millers producing significant quantities of bagasse daily, most are reluctant to utilise this biomass for power export.
JP Mukherji and Associates Chairman and Managing Director Shirish Karandikar said that cogeneration for exporting power to the national grid could generate up to Sh3.1 billion annually. The projection is based on the exportation of 40 megawatts of power and utilising bagasse supplied by three to four factories.
If all 18 sugar factories participated, the potential revenue and power generation would multiply significantly by up to 273,020 megawatts per year.
The consultancy firm proposed the establishment of centralised power plants (Independent Power Plants) by pooling bagasse from three to four sugar factories. The plants could be managed by government entities, sugar millers, or private investors.
"For example, three sugar factories can collectively supply 100 tonnes of bagasse per hour, generating 40 MW of electricity," said Mr Karandikar during a meeting with sugar millers and Kenya Sugar Board officials in Kisumu.
"In regions like Kisumu, a centralised power plant could be established by combining government and private sugar factories," he said.
The estimated cost of setting up a 40 MW electricity plant, including machinery, is approximately Sh4.9 billion, excluding expenses related to land, transmission lines and bagasse transport systems.
"Utilising bagasse for green power generation could significantly reduce Kenya's reliance on power imports and contribute to self-sufficiency in electricity generation," said Mr Karandikar.
He added that rural-based sugar industries could boost socio-economic growth, create jobs and drive industrialisation in surrounding areas.
For sugar firms to embrace power export initiatives, substantial capital investment is required to install high-pressure boilers and additional turbine capacity.
However, many government-owned factories rely on outdated equipment, necessitating modernisation and prioritising the steam economy.
Some private factories, such as Kwale International Sugar Company Limited (Kiscol) have already invested in modern, suitable equipment, making them well-primed for renewable energy programmes.
Kiscol, recognised as one of the most advanced sugar facilities in Kenya, serves as a model for how green energy initiatives can be successfully implemented.
By leveraging facilities like Kiscol and developing supportive policies, Kenya’s sugar industry can unlock a sustainable future, transforming surplus bagasse from an environmental hazard into a cornerstone of the country’s renewable energy strategy.
Nevertheless, challenges remain, including inadequate transmission infrastructure and the absence of viable Power Purchase Agreements (PPAs).
Kenya Sugar Millers Association CEO Mr Stephen Ligawa noted that while some progress has been made—such as the construction of substations near Kibos Sugar—more effort is needed to streamline transmission and PPA negotiations.
"A viable cogeneration project requires a PPA rate of 9 to 10 cents per unit instead of the current 6.9 cents," stressed Mr Karandikar, calling for favourable policies to ensure the financial sustainability of the initiative.
