Designing an algorithm based on network data envelopment analysis with desirable and undesirable indicators for the evaluation of the Iranian power industry

Abstract

Objective: Energy saving regarding its high share in energy consumption of industries has a significant impact on the growth and development of countries. This study aims to evaluate the performance of Iran's electricity generation, transmission, and distribution processes. Methods: By using a network data envelopment analysis (DEA) model, the overall efficiency scores, and efficiency scores of production, transmission, and distribution processes are calculated. The network structure considers the main and surplus inputs (fuel consumption costs, internal consumption, transmission substation capacity, power transmission lines length, transformers capacity, low and medium voltage network length), intermediate sizes (net power generation, gross power generation, and delivered energy), desirable (nominal power, actual power, and delivered energy) and undesirable outputs (environmental pollutants, and energy losses). Results: An algorithm based on a multi-objective programming model is presented to evaluate network performance and simultaneously to evaluate processes efficiency. The proposed algorithm is used to evaluate 16 electricity areas in Iran. Conclusion: The results showed that Tehran, Khorasan, Khuzestan, and Zanjan are the most efficient areas.

Keywords

• performance evaluation
• power industry
• network dea
• production
• transmission
• and distribution processes