India is currently the largest producer of cane sugar in the world, accounting for 10% of the world production. India produces sugarcane (290 million Tonne/Year) from an area of 4,300,000 ha, yielding 40 MMT of bagasse ,which is mostly used as captive fuel & as raw material in paper industry. India has potential electricity production using bagasse 29,0000 GWh/y. more efficient power generation can be achieved if sugar mill follow advanced cogenerative system using high pressure boilers and condensing cum extraction turbines for processing steam. A typical 2500 TCD sugar mill having cogeneration capacity of 22MW exports nearly 0.3 million units of electricity in season with gross generating capacity of 150 million kWh in a year & thus can offset 0.166 million tones of carbon dioxide

Co-generation is the simultaneous generation of two different forms of useful energy from a single primary source of energy. The two different forms of energy are:

• Electrical energy and Thermal energy
• Mechanical energy and Thermal energy

The sequence of generation is not fixed e.g., Electrical/Mechanical energy and thermal energy or thermal energy followed by the generation of electrical/mechanical energy. Co-generation of takes place through thermodynamic degradation of a ingle medium, e.g. Expansion of steam in a steam turbine followed by condensation or cooling down of hot gases. A typical example of an industry where co-generation is already widely used is sugar production where both thermal and electrical energy are generated using bagasse as the main co-generation.