Cogeneration of electricity in sugar-alcohol plant: Perspectives and viability

This study was conducted at a sugar-alcohol plant located in Nova Alvorada do Sul city, Mato Grosso do Sul State (MS), Brazil, with the objective to discuss the economic viability of electricity cogeneration using sugarcane bagasse for sale of surplus electricity for concessionaires through of the Sistema Interligado Nacional (SIN). Net Present Value (NPV) was used to calculate the economic feasibility of comparing the invested initial capital and the result of the sum of the cash flow at the end of the period. It was observed that the investment can produce financial returns when the production of electricity by the plant is above 40MWh or that the MWh price is traded above the USD$ 44.00. The results showed that the cost of production of 1MWh is USD$ 29.04, a competitive value compared to other small power plants, which makes it an excellent alternative both for the company's financial complementarity as well as for the production of electricity of the plant, with environmental and socioeconomic advantages.