The increasing international concerns with global wanuing and greenhouse gas
emissions have been translated via the Kyoto Protocol into the impending 2%
renewables energy supply legislation by the Australian government. This law will
mandate all electricity retailers (e.g. Ergon, Energex etc.) by 2010 to source an
additional 2% of their electricity from renewable resources such as biomass, wind,
hydro, solar etc. It is the 2% measure which is accelerating the interest in cogeneration
by the sugar industry. This paper examines the emerging structure and relativities of the
various renewable energy sources, the potential of these sources to meet the renewables market demands and the significance and potential of biomass, specifically bagasse, cogeneration for meeting the market. The paper provides an overview of the emerging renewables energy market, how the market is likely to operate and how this will impact and interact with the sugar industry and sugar mills in particular. Detailed here will be a range of commercial arrangements between retailers, generating corporations, energy companies and sugar mills which could emerge. The paper also explores some of the technical, operational and financial issues and options which are relevant to enable the sugar industry to meet the market challenges of cogeneration.