The sugarcane industry represents one of the most important economic activities in Brazil, producing sugar and ethanol for the internal and external markets. Moreover, thermal and electric energy is produced for self-consumption, using sugarcane bagasse as fuel in cogeneration plants. Almost all the sugarcane plants in Brazil are self-sufficient in terms of energy supply and in the last few years some of them have been selling their surplus electricity for the grid. The reduction of process steam requirements and the use of more efficient cogeneration systems are new alternatives to increase the surplus electricity generation. The purpose of this paper is to analyze the steam demand reduction on sugar and ethanol process and alternatives for cogeneration systems in sugarcane plants, aiming at the surplus electricity generation increase. (c) 2007 Elsevier Ltd. All rights reserved.