Assessment of operational and environmental performance of the thermal power plants in Turkey by using data envelopment analysis

Abstract

In this study, efficiency analyses of the eleven lignite-fired, one hard coal-fired and three natural gas-fired state-owned thermal power plants used for electricity generation were conducted through data envelopment analysis (DEA). Two efficiency indexes, operational and environmental performance, were defined and pursued. In the calculation of the operational performance, main production indicators were used as input, and fuel cost per actual production ( Y) was used as output (Model 1). On the other hand, in the calculation of the environmental performance, gases emitted to the environment were used as output (Model 2). Data envelopment analysis (DEA) is the main instrument for the measurement of relative performances of the decision making units with multiple inputs and outputs. Constant returns to scale (CRS or CCR) and variable returns to scale (VRS or BCC) type DEA models were used in the analyses. The relationship between efficiency scores and input/output factors was investigated. Employing the obtained results, the power plants were evaluated with respect to both the cost of electricity generation and the environmental effects.