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Mauritius Island Nation Chapter j 15 285

17%
Bagase
1%
39% 4%
Photoltaic/Wind
Landfil gas
Hydro
38%
Diesel and Fuel oil
Coal

FIGURE 15.4 Electricity generation by source of energy for 2015 (SM, 2016a).

also produced about 41% of the total electricity consumed in 2015 (SM,
2016a). For this purpose, it operates thermal power plants running on fuel oil
and kerosene that provide 37% of the total electricity generated and 11
hydroelectric power stations that generate 4% of the total electricity (SM,
2016a). Until the start of this century, the sugarcane industry was one of the
main pillars of the Mauritian economy, as the country enjoyed trade privileges
with the European Union that guaranteed big sugar quotas at favorable
prices. Since the end of the preferential rates and ensuing reduction of sugar
prices starting in 2006, about 2000 ha of land were converted annually into
residential/commercial plots, which guarantee better returns.
Consequently, the sugar industry has reengineered itself to support the
biorefinery concept. Production of bioethanol for the transportation sector and
biofuel for the electricity sector have since been promoted. Ethanol plants,
refinery facilities, and combination bagasse and coal power plants have been
implemented at sugar mills and operate all year round. The owners of these
power plants are commonly referred to as Independent Power Producers
(IPPs). The contribution from IPPs started in 1995 with the power purchasing
agreements (PPAs) meant to encourage use of bagasse, a by-product of
sugarcane. PPAs also allowed the use of coal, even outside the intercrop
season. In fact, the weak financial incentive to use bagasse instead of coal is
associated with increased coal use by IPPs. In 2015, for example, the IPPs
used 198 ktoe of bagasse as opposed to 424 ktoe of coal (SM, 2016a). In the
wake of more strict environmental regulations, the PPAs will be renegotiated
soon, and it is expected that they will be amended to favor the use of biomass,
including bagasse. New PPAs with solar photovoltaic (PV) and wind energy