The CEB-Terragen Tussle

Editorial

The issues related to the use of biomass, and in particular, cane bagasse, towards electricity generation are at several levels: from the use of a renewable energy source in our generation mix, through return on investment for millers to set up such generation units, to the adequate revenue sharing of electricity sales proceeds with cane planters and the price paid by CEB and ultimately consumers to such Independent Power Producers (IPPs). The generational trust deficit between planters, millers and large establishment planters has meant that all of the above could be and indeed have been contentious since the first IPP contract was signed and the Compagnie Thermique de Belle Vue, now known as Terragen, started operations in the north. Several in other regions followed suit in the early 2000s under the impulsion of the World Bank, although we are given to understand that their contracts, though still controversial, were not of the “take or pay” early model adopted for Terragen.

A further vexed question remained the necessary use of coal as complementary fuel when bagasse would not be available i.e., in the intercrop season and the rising green energy concerns both for cane millers/owners and, for instance, the proposed large all-coal CT Power project in Albion by a foreign investor which drew heavy flak and was ultimately abandoned. Unhappiness with either the precursor IPP contract model or later variants, made necessary a general review and a new cane sugar framework when the Labour Party-Alliance Sociale partners came back to power in 2005 followed by a report on a new greener energy strategy. Read More… Become a Subscriber

Mauritius Times ePaper Friday 6 May 2022