Zimbabwe has suffered electrical power shortages resulting in electrical energy imports rising to between 40% and 50% of total energy needs. Electricity generation capacity has stagnated at around 2000 Megawatts (MWe) since 1985, when two thermal units totaling 440 MWe were completed at Hwange. The effective capacity is 1.75 GW(e). The current plan is to increase capacity by installing 600 MWe at Hwange at a cost of at least US $ 600 million. Raising this level of capital is difficult hence over the last 15 years there has been a failure to increase capacity. This article is based on a study of bagasse cogeneration in Zimbabwe and Mauritius conducted over a two-year period. It discusses technology improvements that can be made in the sugar sector to improve process and energy efficiency for the purposes of becoming an independent power producer that supplies power to the grid continuously throughout the year. Power plant investment in the sugar industry offers a bridging and realizable alternative for electricity generation in Zimbabwe. Investment in a 35 MWe bagasse (moisturized fiber left when sugar has been extracted from sugarcane) system would require a capital of about US$ 35 million using modem technology based on experiences in Mauritius and Reunion. A technical and economic evaluation and analysis reveals that bagasse power development is technically and economically feasible if electricity is priced at the long-term marginal cost. At current import prices, financial assistance from the global environment facility and/or the clean development mechanism of the Kyoto protocol would be necessary. The solving of the current political and economic problems in the country would pave the way for attracting a technical partner and development, of bagasse power using domestic and international financing. (C) 2003 Elsevier Science Ltd. All rights reserved.