The Measures of Efficiency of Power Generation Plants in Sylhet of Bangladesh

Kanis Fatama Ferdushi,Anton Abdulbasah Kamil,Luthful Alahi Kawsar,Saleh Ahmed

doi:10.1155/2020/9308174

Abstract

This study measures the performance of power generation plants in Sylhet region of Bangladesh considering twenty-four-month monthly dataset during 2013-14. To measure the performance of those plants, gross electricity generation was considered as output for the stochastic frontier model, whereas fuel consumption, lube oil consumption, auxiliary consumption, cost, heat rate, and hours of run were considered as input variables. Based on the log-likelihood hypothesis test, trans-log production model is preferred over Cobb–Douglas (C-D) production model for this study. The average efficiency of the selected plants is above 90 percent, and there is Sylhet Combined Cycle Power Plant (CCPP) which has an efficiency of about 78.6 percent for truncated normal distribution. In the time-variant inefficiency effects model, fuel consumption, cost, square product of lube oil consumption, interaction between fuel consumption and lube oil consumption as well as auxiliary consumption, and hours of run have a significant positive influence on power generation. On the other hand, some input variables such as hours of run and interaction between cost and heat rate have a significant negative influence on power generation. The estimated values of the time-varying inefficiency parameter η are positive for both the truncated and the half-normal distribution. This result indicates that technical efficiency has declined over the reference period of the study.

Highlights

Electricity is the main source of power of a country, and most of the economic activities depend on this power
Power generation has been accelerated through different resources in Bangladesh, but mass people could never enjoy hundred percent electrification, and people are still facing the problem of load shedding in urban and rural areas
Results and Discussions e results of time-invariant maximum-likelihood estimation (MLE) of the trans-log production frontier model assuming a half-normal and truncated normal distribution for the electricity supply plant in Bangladesh are presented in Table 4. e coefficient of fuel cost is highly statistically significant for both half-normal distribution and truncated normal distribution. e parameter estimates for fuel are highly significant for both half-normal and truncated

Summary

Introduction

Electricity is the main source of power of a country, and most of the economic activities depend on this power. Bangladesh is the most densely populated country in the world and considered one of the most arousing energy growth nations. E rapid increase of economic and population growth has resulted in increasing electricity demand in Bangladesh [1, 2]. Power generation has been accelerated through different resources (solar, renewable energy, etc.) in Bangladesh, but mass people could never enjoy hundred percent electrification, and people are still facing the problem of load shedding in urban and rural areas. E installed capacity of power generation in Bangladesh was 1,437 MW in 1986. E total installed capacity is 20,000 MW (combining solar power) as of September 2018 More than 90% of the nation’s power was generated by steam turbine, gas turbine, or combined cycle power stations using domestically available natural gas. e total installed capacity is 20,000 MW (combining solar power) as of September 2018

Methods

Results

Conclusion