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

This paper investigated the performance of Malaysian power plants from year 2015 to 2017 using Malmquist Total Factor Productivity (TFP) index, which is based on Data Envelopment Analysis (DEA). approach offers substantial advantages as compared other existing methods it can measure productivity changes over time for a variety inputs and outputs. Moreover, comprises two primary components: technical efficiency change technological indexes that provide clearer insight into factors are responsible shifts in total factor productivity. study uses single input, installed generation capacity (MW), outputs, average thermal (%) equivalent availability (%). These output-input data included ten main plants: TNB Natural Gas, SESB Diesel, SEB Coal, IPP Semenanjung Sabah Diesel. The results have significant implications fossil fuel Malaysia. First, was boosting TFP Meanwhile, decline may be attributed, part, lack innovation components found – 2016 were at 146% then dropped significantly 2% 2017. Second, scale rose dramatically -53% 3% providing contribution improvement changes. become efficient plants’ size increases. indicates plant positively impacts TFP.