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Efficiency assessment of Turkish power plants using data envelopment analysis

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  • Sarıca, Kemal
  • Or, Ilhan

Abstract

The performance of electricity generation plants in Turkey are analyzed and compared. The data set contains inputs from 65 thermal, hydro and wind power plants, owned by private and public sectors. Data envelopment analysis (DEA) is used as the primary mathematical tool. Two efficiency indexes, reflecting operational and investment performance, are defined and pursued. Constant returns to scale, variable returns to scale and assurance region type DEA models are used in the analysis. Scale efficiency is also considered. Performance comparisons include public versus private sector plants, and natural gas versus coal versus oil fired plants. Also, relationships between efficiency scores and various input/output factors are investigated and some interesting trends are identified.

Suggested Citation

  • Sarıca, Kemal & Or, Ilhan, 2007. "Efficiency assessment of Turkish power plants using data envelopment analysis," Energy, Elsevier, vol. 32(8), pages 1484-1499.
  • Handle: RePEc:eee:energy:v:32:y:2007:i:8:p:1484-1499
    DOI: 10.1016/j.energy.2006.10.016
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    References listed on IDEAS

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    1. R. D. Banker & A. Charnes & W. W. Cooper, 1984. "Some Models for Estimating Technical and Scale Inefficiencies in Data Envelopment Analysis," Management Science, INFORMS, vol. 30(9), pages 1078-1092, September.
    2. El-Mahgary, Sami & Lahdelma, Risto, 1995. "Data envelopment analysis: Visualizing the results," European Journal of Operational Research, Elsevier, vol. 83(3), pages 700-710, June.
    3. Boussofiane, A. & Dyson, R. G. & Thanassoulis, E., 1991. "Applied data envelopment analysis," European Journal of Operational Research, Elsevier, vol. 52(1), pages 1-15, May.
    4. Park, Soo-Uk & Lesourd, Jean-Baptiste, 2000. "The efficiency of conventional fuel power plants in South Korea: A comparison of parametric and non-parametric approaches," International Journal of Production Economics, Elsevier, vol. 63(1), pages 59-67, January.
    5. Charnes, A. & Cooper, W. W. & Rhodes, E., 1978. "Measuring the efficiency of decision making units," European Journal of Operational Research, Elsevier, vol. 2(6), pages 429-444, November.
    6. Korhonen, Pekka J. & Luptacik, Mikulas, 2004. "Eco-efficiency analysis of power plants: An extension of data envelopment analysis," European Journal of Operational Research, Elsevier, vol. 154(2), pages 437-446, April.
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