Abstract
The study evaluates the efficiency of 64 public sector thermal power plants using the slack-based model (SBM), a subset of data envelopment analysis (DEA) designed to measure technical efficiency (TE) along with undesired output, for the period 2017–2018 to 2021–2022. Results reveal that the desired output can be increased by 42% with the same inputs. Despite the general mean TE, there has been a declining trend over time, with about half of power plants having efficiency rates below 50% efficiency margin, and hence signifying increased fuel or operation costs. This conclusion is supported by the findings of the Tobit regression that indicate that the fuel inputs were negative determinants of TE. Moreover, the analysis shows that there can be a reduction of carbon dioxide emissions by 3%, thus giving promising signs to environmental sustainability. The inferences also reveal that thermal power plants managed under the central sector show better performance in both technical and environmental efficiency. The conclusions highlight a significant opportunity to increase electricity generation output relative to inputs through improved technical processes, maintenance, or technological upgrades. The Tobit regression results reveal that plant load factors in central sector plants and facilities are significant positive determinants of TE, but plant size and fuel inputs are negative contributors to the TE score. The research has emphasized the urgent situation to enrich the fuel efficiency, coal quality, technology, and plant utilization, as well as operations efficiencies, to increase the suitability of the Indian power sector.
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