Abstract: This study outlines work on the modification of co-generation plant in a sugar cane factory for reduction of power deficit. These modifications, which tested though a sample 6000 TCD sugar cane factory, contain minimization of process steam demand and also high-pressure steam production, using high-pressure boilers which coupled with condensing-extraction steam turbines as option 1 and biomass integrated gasification as option 2. By these modifications, the additional revenue for sugar industry by generating surplus power and supplying to national grid could be possible. Applying the suggested modifications on the sample factory achieved 4 and 22.4 million USD monetary benefits for options 1 and 2, respectively. Because of the required investment for options 1 was 16 million USD and for option 2 was 179 million USD, the investment had an attractive simple payback period of 4 years for option 1 and 8 years for option 2. Thanks to the increased amount of agricultural residues available for power production, the higher efficiencies in conversion and to a lesser extent, the avoided emissions as a result of less sugar cane burning, the emissions of CO2, greenhouse gases and particulates would be significantly reduced.