Power Plant Benchmarking
values shown in Table 1. This type of analysis is impossible to improvements in EAF or EFOR. For example, let us consider the
perform without unit-specific data. Yet confidentiality concerns impacts of ‘value’ versus ‘performance’ of an average base-
have continued to make the collection process a challenging load coal plant operating within a regulated or deregulated
task. The PGP’s new web-based data collection process should market. While specifics of the market and demand need to be
ease challenges with data entry and verification. Online peer tailoredtotheactualsituation,thecomparativeanalysisyields
group analysis and reporting will soon become a reality and some interesting results.
offer contributors the opportunity to directly benefit from
participation in data sharing.
•
A large part of the financial benefits for achieving top decile
Today, power plant operators must think in strategic and performance are realised by achieving top quartile
economic terms rather than purely technical ones. The reality performance.
is that mixed regulatory, ownership and market perspectives
•
Deregulated markets will yield potentially higher benefits to
correspond to mixed goals, objectives and priorities for generators for incremental improvement.
generation entities. Varying business models, varying risk
profiles and different ‘obligations to serve’ complicate the issue As the issue of performance becomes increasingly complex,
even further. the ability to measure and analyse performance is becoming
While the challenge remains essentially the same – to even more challenging. There is no clear ‘right’ way to address
improve the performance of the existing generating plant – the this issue; different entities, different facilities, different
complexityanddynamicsofthemarketrequireare-evaluation markets and different obligations will all yield different needs.
of the means for collecting, analysing It should not be surprising, therefore,
and benchmarking performance.
...it is necessary to
that the electricity supply industry is at
Specifically, it is necessary to consider
consider how to evaluate
somewhat of a crossroads both in terms
how to evaluate performance in the
context of multiple objectives; reliability,
performance in the context
of how it measures itself and also what
data or information is necessary to
availability, efficiency, environmental of multiple objectives support such measures.
performance and flexibility. The ability to understand the
Building on the benchmarking framework discussed above, magnitude of the opportunity associated with improved
it is obvious that to move from average EFOR performer to top performance is unquestionably a key challenge for the future,
quartile and top decile would require improvements of 7.7% particularly given the critical role of existing plant to both
and 10.4% respectively. This provides concrete means for produce needed power as well as support larger
defining capital investment and changes in O&M that are environmental performance objectives. The ability to evaluate
necessary to reach such targets and to define the costs/risks power plant performance in the context of its peers is key to
associated with such aspirations. Yet, economics must play a the success of this outcome. The industry’s challenge is to
role. How much is the value in terms of increased net margin continue to find ways not only to collect and analyse the
from power sales worth? necessary data but also to provide the framework to extend
the analysis across markets, across technology choices and
Defining Value across financial realities.
To address this issue, the PGP committee developed the In terms of the potential impact on the energy sector, the
initial version of a spreadsheet-based tool to help place benefits of the global comparison system are numerous and
technical performance within the context of financial obvious. Information exchange will help improve the
performance. The model provides the means for users to performance of power generating plants around the world and
analyse many aspects, even for technologies that the user does provide access to electricity to larger populations, thereby
not fully understand. It provides a tool for assessing and improving the quality of life for many people.
•
presenting a thorough availability and economic comparison
for various facilities, technologies, markets and obligations. It
Elena Virkkala Nekhaev is Director of Programmes at the
serves as an educational framework that facilitates the quick
World Energy Council.
comparison of plants that are difficult to compare side by side.
E:
nekhaev@worldenergy.org
By applying thismodel, itispossible tobetter understand the
www.worldenergy.org
implications of revenue gains that would be associated with
worldPower 2009 127
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