INVESTIGATING THE CHALLENGES OF BAGASSE COGENERATION IN THE KENYAN SUGAR INDUSTRY

The overall objective of this research was to determine the factors hindering cogeneration in the Kenyan sugar industry and the way out. The technical, financial and policy issues hindering cogeneration were investigated. The study targeted sugar factories, the Ministry of Energy, the Kenya Sugar Board, Kenya Power and Lighting Company Ltd and Kenya Electricity Generating Company Ltd (KenGen). The capacity of operating Kenyan sugar factories was determined. Data was collected through observation, questionnaires, interviews and document analysis and review. In this research, of great concern was the capacity to use sugarcane bagasse as a fuel for export-based cogeneration in the sugar industry in Kenya. Whereas cogeneration in sugar production has been around for long, export-based cogeneration is a new concept that is yet to be adopted in many countries, Kenya included. The research showed that at current capacity and efficiency, the seven operating sugar factories have export capacity of 586 GWhrs. This capacity improves to 972 GWhrs at factory overall efficiency of 90% for the current production capacity. The potential is 1,803 GWhrs based on planned factory capacities as per strategic plans of operating factories at efficiency of 90% and high steam pressure of 82 bars. However, to realize this potential, the current legal and regulatory challenges, technical limitations and financial challenges need to be addressed. To facilitate export-based cogeneration, investing in high-pressure steam generation facilities, process improvements to reduce process steam demand and electricity consumption while availing more steam for power generation, deliberate government policy to encourage export bagasse cogeneration through fiscal and regulatory measures to spur up investments in bagasse cogeneration, were recommended.