In the course of sugar manufacturing Bagasee, a by product is generated, which is used as a bio-fuel for boilers to generate steam and for the rotation of turbines and further to generate electricity. We get steam and electricity from this Bagasse, this is called Co-Generation. 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 consumed by our manufacturing units like Sugar, Distillery and Vinegar. This is called Captive Consumption. Besides the captive consumption, there is surplus power generated which is transmitted to the grid through our company’s transmission line.
Our Company has 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 surplus power up to 22.4 MW to be supplied to the grid. We use approximately 12 MW for captive consumption.