Abstract

Power plants plays an important role in term of economic and social affect in all societies. Most of economic sectors and manufacturers are depended in the outcome of power plants in one side and electricity is a vital need of all households and entire society. Therefore, the performance of power plants and consequently their sustainability is crucial concept in the current century. This article proposes a generalized efficiency measurement model for multi-plant firms in terms of returns to scale and number of outputs. This yields to some new indicators for efficiency measurement in an un-communal and communal environment for the local and global analysis. The idea is explained by providing a graphical illustration and numerical example. Proposed models are used for energy efficiency analysis of 46 power plants of 19 provinces in Iran. Local and global aspect of energy efficiency are investigated by using proposed models for aforementioned case study. Primary results are shown that, higher potential energy saving in the communal global environment compared with the local analysis. This highlight the corporation of production electricity units, namely, power plants in this study is a requirement for sustainable energy supply.

Highlights

  • Data envelopment analysis (DEA) is a mathematical programming based approached for efficiency analysis of a group of decision-making units (DMUs) propose by Charnes et al [1] and its origin goes back to the work of Afriat [2] that dealt with the concept of efficiency analysis in an axiomatic manner

  • Flexibility of DEA model for considering different managerial and economic factors in one hand and its simplicity for solving on the other hand makes it as an attractive methodology for efficiency analysis

  • We propose the underlying methodology of a production technology that is capable of assessing the performance of production unit in a local and global collaborative environment; the fact that is ignored in the classical efficiency analysis

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Summary

INTRODUCTION

Data envelopment analysis (DEA) is a mathematical programming based approached for efficiency analysis of a group of decision-making units (DMUs) propose by Charnes et al [1] and its origin goes back to the work of Afriat [2] that dealt with the concept of efficiency analysis in an axiomatic manner. Linear programming model that is capable of analyzing the efficiency of multi plant firms in a DEA framework [4] Their model is based on a production technology with decreasing returns to scale. The current paper proposes a multi-plant firm modeling based on a generalized production technology capable of dealing with all types of returns to scale cases. Growing demand for electricity can be attributed to the economic structure, climate change, and technology structure One of these key strategies and practices is the use of identifying and measuring the efficiency and efficiency of existing executive levels, including refineries, power plants and maternal industries in different parts of the country [8]. In this paper, proposed models are utilized for the local and global efficiency analysis of 46 power plants of 19 provinces in Iran. VOLUME 9, 2021 of 19 provinces in Iran, both in province level and country level

LOCAL AND GLOBAL MULTI-PLANT EFFICIENCY
CONCLUSION

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