By-production of electricity and particulates: efficiency of Indian thermal power plants revisited

Abstract

PurposeThis paper studies the efficiency of Indian coal-fired thermal power plants (CTPPs) in by-production of electricity and particulates also known as Suspended Particulate Matter (SPM).Design/methodology/approachA non-radial directional distance function is optimized using data envelopment analysis to enumerate the overall inefficiency of CTPPs and its components in recent times. Further, second-stage regression analysis is conducted to identify factors that affect the inefficiency of plants.FindingsThe low inefficiency score for electricity generation suggests that most CTPPs operate close to the good output frontier. A high degree of emissions inefficiency is a challenge for Indian CTPPs. Ever-rising coal use inefficiency is a hindrance to control SPM emissions. The second stage regression analysis concludes that factors like ownership and capacity utilization play vital roles in determining a plant’s inefficiency level. Privately owned CTPPs have performed better in terms of technical inefficiency and emission inefficiency than plants owned by Central and State governments.Originality/valueTo the best of the authors’ knowledge, this study is one of the few published works that benchmark the productive and environmental performance of Indian CTPPs.