Over the last few years Dwarikesh is focusing specifically on power co-generation as demand for power is witnessing a nationwide increase. Power is a byproduct of sugar industry as the calorific value of bagasse (another byproduct) is very high. This can be used as a non-conventional renewable fuel in co-generation set-up.

For a sugar mill, opting for co-generation of power has the following advantages:

The mill gets an additional revenue stream.

The mill can also partly protect itself from the cyclical nature of businesses such as sugar, alcohol, molasses and bagasse.

The duration of crushing can be extended on the economics of co-generation even after sugar recovery falls to low and uneconomic levels at the end of the season.

During the financial year 2016-17, our earnings from this segment stood at Rs. 7952.02 lacs. Dwarikesh sugar sees bright future prospects in this sector and is constantly increasing its capacity to produce power. About 56 MW of power from the plant is available for sale to the Uttar Pradesh state grid. Rest of the power is used for captive cosumption. Dwarikesh's power co-generation plant was commissioned in 1996 with an initial generation capacity of 6 MW. It was expanded to 9 MW in 2002 and was further increased to 26 MW in 2006 and has touched the figure of 86 Mw in 2007 .

The state government is our biggest consumer in this regard. However, with the production going up constantly and substantially, the company may explore other avenues to sale power. As of now, the management has ruled out entry into other parts of the country. The company has started banking some units with the state grid with a provision to get the same back in off season to meet out the requirements of electricity for repair & maintenance and for providing electricity to offices and colony. Thus, the Company has saved valuable money which was earlier being expended in purchasing diesel required to run D G Sets.