Performance Assessment of Malaysian Fossil Fuel Power Plants: A Data Envelopment Analysis (DEA) Approach

This paper investigated the performance of Malaysian power plants from the year 2015 to 2017 using Malmquist Total Factor Productivity (TPP) index, which is based on Data Envelopment Analyn (DEA). This approach offers substantial advantages as compared to other existing methods nit can measure productivity changes over time for a ariety of inputs and outputs. Moreover, it comprises two primary components: the technical officiency change and the technological change indexs that provide clearer insight into the factors that are responsible for shifts in total factor productivity. This study uses a single input, installed generation capacity (MW), and two outputs, average thermal efficiency (%) and average epivalent availability factor (6). These output input data included ten main power planes: TND Natural Gas, SS Natural Gas, SPSD Diesel, sin Natural Gan, SPB Coal, STB Diesel, IPP Semenanjung Neural Gan, IPP Semenanjung Coal, IPP Sahah Natural Gan, and IPP Shah Diesel. The remil have two significant implications for fossil fuel power plants in Malaysia. First, technological change was the primary factor in boosting the TPP performance of the fossil fuel power plants in Malaysia Meanwhile, the decline in TPP performance in Malaysian fossil fuel power plants may he attributed, in part, to a lack of innovation in technical components as the results found that the average technical efficiency changes in 2015 2016 were at 14% and then dropped significantly to 2% in 2016 2017, Senend, the average sale efficiency changes rone framatically from 5%% providing a significant contribution to the improvement of technical efficiency changes. The fossil fuel power plants become efficient as the power plants' size increases. This indicates that the size of a power plant positively impacts the performance of the TPP. @The author(s). Published by CBIORE. This is an open access article under the CC BY-SA licence (http://creativecommons.org/licenses/by-sa/4.0/). Received:24 August 2022; Revised: 15 Oct 2022; Accepted: 27* Dec 2022; Available online: 8 Jan 2023