The government of Pakistan did introduce in 2002 a policy for IPP’s in which incentives were announced for power cogeneration units. Sugar mills are running totally independent. They have sufficient biomass, called bagasse, from the sugar cane to meet their energy requirement. In the past, the bagasse was seen as a wastage and should be not saved. Most plants are therefore in the past not operated in an efficient way. Nowadays they have to do as the bagasse has a good market value and also high amounts of power can be generated and supplied into the grid.