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Sugar REET

Implementing Resource and Energy Efficient Technologies (REET) in Pakistan’s Sugar Sector

The sugar industry depends on the continuous supply of a raw material – the sugarcane. Industries in Pakistan use a waste product of the sugar production, bagasse, to produce electricity. However, the productivity and efficiency of generating electricity from bagasse in Pakistan varies greatly when compared to other countries. For example, analyses showed that an average sugar mill in Pakistan consumed around 1,250 MJ/tonne, in contrast to the 935 MJ/tonne of its Indian counterparts. This inefficiency has an environmental impact and leads to higher greenhouse gas emissions.

In response to this pressing challenge, the CSCP, in collaboration with the developmental consultancy Iqbal Hamid Trust, initiated the Sugar REET project in 2018. The project was finalised in 2023. During the course of the five years, the project aimed to revamp and optimise the resource efficiency across sugar factories operating within the provinces of Sindh, KPK, and Punjab in Pakistan.

Key Project Highlights:

  • Capacity Building: Small and medium- sized enterprises (SMEs) were empowered with state-of-the-art knowledge and tools to adopt best practices in resource and energy efficiency.
  • Standardisation: Solution providers underwent training to standardise Energy and Resource Efficiency (ERE) equipment.
  • Audit Training: Specific training modules were devised to guide auditors on energy evaluations within SMEs.
  • Financial Facilitation: Financial institutions received guidance on risk assessment and mitigation strategies for financing innovative ERE techniques.
  • Policy Collaboration: The project supported the National Energy Conservation Authority, facilitating the shaping of energy-efficient policies mirroring international best practices.
  • Banking Partnerships: The State Bank of Pakistan played a pivotal role in establishing landing schemes specifically aimed at financing resource and energy efficiency projects.

Project Milestones:

  • Contributed to reducing the overall CO2 emissions
  • Supported SMEs in reducing their bagasse consumption
  • Helped SMEs optimise their Steam-on-Cane ratio
  • Lead to reducing the overall water consumption along the sugar production chain
  • Contributed to decreasing the overall energy consumption at the target SMEs

Furthermore, the CSCP took a specialised role in assisting financial institutions. Their training modules, equipped with practical examples, guided institutions on evaluating loan proposals from SMEs investing in energy-efficient avenues. The broader scope of the project also involved an in-depth study analysing clean finance instruments, an extensive review of credit guarantee schemes, and an integration of resource and energy efficiency projects into the State Bank of Pakistan (SBP)’s refinancing scheme.

The Sugar REET project was funded by the SWITCH-Asia program of the European Commission.

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