Abstarct: Sugar factories serve as one of the most important energy consumers in industrial societies. The amount of energy consumed in these production units is very important and should be optimized and targeted. Replacing more efficient systems such as cogeneration systems over traditional systems will increase energy efficiency, exergy efficiency, reduce fuel consumption and lower operating costs. Therefore, in this study, six scenarios for replacing cogeneration systems with traditional ones for Shahroud Sugar Factory were investigated. The results show that using hybrid cogeneration system improves energy and exergy efficiency and reduces operating costs and fuel consumption. Among the six scenarios presented, the combination of gas engine and steam turbine was selected as the best scenario. The results show that using this combination will achieve 80% energy efficiency and 61% exergy efficiency. It also reduces fuel consumption by 41% and operating costs by 55%. In this status, the peyback with interest rate and interest rate will be 6 and 1.36 years, respectively.