Measuring Technical Efficiency and Productivity in Steam, Gas and Compound Cycle Power Plants

Electrical industry has strong effect and is dynamic industry because of it,s infrastructural role and it,s relationship to effective factors of economic growth. Increasing efficiency and productivity are significant consideration electrical industry. Electrical production entity (power plants) is important and also most investing entity of electrical industry. Therefore according to importance of power plants, aim of this empirical paper is that to measure thechnical efficiency in year 2008 and productivity during years 2003-2008 for 26 thermal power plants of iran by Data Envelopment Analysis (DEA) method and Malmquist Index. These results explanate the under assumption of constant returns and variable in year 2008, average amount of technical efficiency of power plants was 76.4 and 92.8 respectivity and Scale inefficiency has the maximum impact on the technical inefficiency. On average the productivity growth in all of selected power plants was equal to 1.5 percent during years 2003-2008 and it was the most influential factor in productivity of technological change.