A data envelopment analysis approach to evaluation of operational inefficiencies in power generating units: a case study of Indian power plants

A nonparametric approach to frontier analysis, data envelopment analysis (DEA), is applied in this work to evaluate the operational inefficiencies of generating units. Three parameters viz. generation per unit of coal consumed, generation per unit of oil consumed and generation per unit of auxiliary power consumption have been considered as indicators of performance. The DEA approach provides with a best practice frontier for each of these parameters, which can then serve as a benchmark for efficiency. Also, the slack analysis indicates the causes of inefficiency. A time series study of units' performance, identifies those units that need renovation and repowering and those units where the performance could be improved by extensive training of operating personnel. The analysis in this paper considers operational performance statistics of all coal based generating units belonging to National Thermal Power Corporation of India over the period 1991 to 1995.