Developing an Analytical-Mathematical Model for Evaluating the Efficiency of the Power Production, Transmission, and Distribution Companies in the Electric Power Industry of Iran: An Network Data Envelopment Analysis (NDEA) Approach with Undesirable Outputs

Abstract

Objective: The electric power industry is one of the vital arteries contributing to the growth and development of countries and the electricity access index is one of the main components of assessing the industrial competitiveness in each country. Given the importance of this strategic industry, this study sought to develop an analytical-mathematical model for evaluating the efficiency of the power production, transmission, and distribution companies in the electric power industry of Iran. Methods: In this study, the network data envelopment analysis (NDEA) approach with undesirable outputs was used. Additionally, a model was developed to evaluate the efficiency of the power production, transmission, and distribution companies in the electric power industry of Iran. Results: By solving the mathematical model used in this study, the efficiency of 43 governmental power plants, 16 regional electricity companies, and 39 power distribution companies in Iran were evaluated. The findings demonstrated that the average efficiency of the power production, transmission, and distribution companies in the Iranian electric power industry stands at 0.83, 0.6, and 0.71, respectively. Conclusion: The results of this study indicated that the efficiency of the power transmission companies in the electric power industry of Iran is lower than those of the power production and distribution companies. The study also identified the main reason for the inefficiency of the power production, transmission, and distribution companies of Iran's electricity industry.

Keywords

• performance evaluation
• efficiency, network data envelopment analysis (ndea) approach
• undesirable outputs
• electric power industry of iran