The activity of sugar manufacturing results in the residue Bagasse, which is used as a bio-fuel for boilers to generate steam and for the rotation of turbines which generates electricity. Our co-generation unit has an installed capacity of total 36.4 MW divided into two turbine generator set of 14 MW and 22.4 MW.
Electricity is a unique commodity which cannot be stored and has to be consumed the moment it is generated. The electricity is partly consumed by our other manufacturing units like Sugar, Distillery and Vinegar. Besides the captive consumption, our Company has installed and maintains transmission lines which transmit the surplus electricity generated by us to our clients. Our Company had entered into a Power Purchase Agreement (PPA) with Electricity Supply Companies (ESCOMs) in the state of Karnataka on February 17, 2017 (PPA). This agreement is valid for a period of five (5) years from the date of commencement of power supply. The distribution companies forming part of the PPA are Bangalore Electricity Supply Company Limited (BESCOM), Mangalore Electricity Supply Company Limited (MESCOM), Gulbarga Electricity Supply Company Limited (GESCOM), Hubli Electricity Supply Company Limited (HESCOM) and Chamundeshwari Electricity Supply Corporation Limited (CESC, Mysore). The aforementioned Power Purchase Agreement mandates us to supply 22.4 MW of power per year. We use approximately 14 MW for captive consumption and the balance is transmitted to various distribution companies as mentioned in the said PPA. However, in times of lower captive electricity consumption, we sell the further surplus through open access market.