Performance assessment and optimization of thermal power plants by DEA BCC and multivariate analysis

Abstract

This study presents an integrated Data Envelopement Analysis (DEA) methodology using Banker Charnes Cooper (BCC) input oriented model for assessment and optimization of conventional thermal power plants (gas, steam and combined cycles). Installed capacity, fuel consumption, labor cost, internal power, forced outage hours and operating hours are used as input parameters whereas total power generation is used as output parameter. Moreover, 40 power plants in Iran were used as decision-making units and DEA-BCC model was used to assess their efficiency and rank during 1997-2000. Principal Component Analysis (PCA) and Numerical Taxonomy (NT) together with Spearman correlation technique were used to verify and validate the findings of DEA-BCC approach. In addition, all regional power plants have been ranked, assessed and optimized in comparison with all thermal power plants.