A NEW BEGINNING FOR SUGAR COGENERATION IN AUSTRALIA?

THIS PAPER REVIEWS the implementation of cogeneration in the sugar industry in view of recent changes in policy dealing with global warming and energy market issues. It includes an analysis of the effect on supply and demand of renewable energy that the latest MRET policies at the federal level will have. It also addresses the impact of emissions trading policies on electricity prices. The effect of full retail contestability in Queensland on the ability to contract the sale of electricity in regional Queensland is also examined. The impact of the implementation of cogeneration in association with boiler upgrades or replacement, mill rationalisation and/or the implementation of ethanol production is also examined. Collectively, these key changes to energy markets will play an increasingly important role in determining the ongoing viability of raw sugar production in Australia.